Economists share confidence in Chinese economy's further growth

There's still room for the Chinese government to make macroeconomic policies stronger next year, economists said at a seminar of the China Macroeconomy Forum, Securities Times reported on Wednesday.

Their comments came as the annual tone-setting Central Economic Work Conference, which was held in Beijing last week, outlined a new positioning for high-quality development and specific deployments for the 2024 economic agenda.

Wang Yiming, vice-chairman of the China Center for International Economic Exchanges, said the macroeconomic policy will be moderately strengthened in 2024, as reflected by the conference's emphasis on reinforcing macroeconomic regulation and aligning policies to stabilize expectations, growth and employment.

The conference also stressed enhancing fiscal policies for higher quality and efficiency while ensuring flexible and targeted monetary policies.

Enhancing fiscal policy effectiveness involves optimizing expenditure structures to ensure robust financial support for major national strategic tasks, including backing technological innovation, expanding effective demand and promoting urban-rural coordination, Wang said.

Yang Ruilong, professor at Renmin University of China, said that infrastructure investment is a crucial driver for stimulating investment demand and there's room for fiscal policy to bolster consumer demand.

Regarding monetary policy, Wang said the continued stability and sustainability of credit growth are the main focuses for 2024, as low domestic price levels providing room for monetary policy to be further enhanced.

The tone-setting meeting called for efficient utilization of financial resources, emphasizing the importance of revitalizing existing loans.

Supporting technology, rural revitalization, small and micro private enterprises, and other sectors will require structural tools, Wang added.

Insufficient effective demand remains a primary issue in the current economic operation.

Wang Wei, former head of the Institute of Market Economy at the Development Research Center of the State Council, said promoting consumption needs to focus on innovation, quality enhancement, structural adjustments and reforms.

Key aspects to bolster consumption include integrating consumption promotion with upgraded trends, stabilizing traditional sectors while enhancing quality, aligning consumption and investment, she said.

Wang Yiming is optimistic about China's GDP growing by 5 percent next year, and believed that bolstering economic vitality lies in enhancing the dynamism of market entities, especially among private enterprises.

CMF's latest forecast raised China's 2024 economic growth expectation from 4.8 percent to 5.0 percent.

Liu Xiaoguang, a professor at the Renmin University of China's National Academy of Development and Strategy, said the anticipated growth potential from upcoming reforms is expecting increased investment scale and consumer resurgence to play pivotal roles.