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China's economic conditions to improve in 2024 - officials

Published 12/17/2023, 06:51 PM
Updated 12/19/2023, 12:30 AM
© Reuters. FILE PHOTO: A customer selects products at a supermarket in Shanghai, February 10, 2015. REUTERS/Aly Song/File Photo
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BEIJING (Reuters) -China's economy is expected to see more favourable conditions and more opportunities than challenges in 2024, state media said citing officials of the Chinese Communist Party's finance and economy office.

Macroeconomic policies will continue to provide support for economic recovery, the official Xinhua said in a detailed readout of the annual Central Economic Work Conference held from Dec. 11-12, during which top leaders set economic targets for the following year.

"China's prices are low, central government debt levels are not high, and conditions are in place to strengthen implementation of monetary and fiscal policies," Xinhua said, quoting the office of the Central Financial and Economic Affairs Commission late Sunday.

Still, blockages persist in the domestic economic cycle as demand, consumption and enterprise investment remain weak.

Next year, the party officials said China will look to shift from a post-pandemic recovery to sustained consumption growth.

The International Monetary Fund last month revised upward its growth forecast for China to 5.4% this year, attributing the revision to a "strong" post-COVID recovery. The government has set a target of around 5%.

The world's second-largest economy will also cultivate new consumption growth areas such as smart homes, recreation and tourism and sports events.

The effects of this year's treasury bond issuance, cuts in interest rates, tax and fee cuts and other policies will continue into next year, the report said.

China would also continue to monitor its battered real estate market and meet the reasonable financing needs of real estate companies.

© Reuters. FILE PHOTO: A customer selects products at a supermarket in Shanghai, February 10, 2015. REUTERS/Aly Song/File Photo

"With the concerted efforts of all parties, the policy objectives of real estate risk prevention and market stabilisation can be fully achieved," the Xinhua report said.

($1 = 7.1179 Chinese yuan)

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