Experts Agree That 2022 Will See Steady Growth
Consensus is emerging on GDP growth of 5-6%, easing of fiscal policy. Experts said on Friday that China will be able to achieve GDP growth of around 5.5 percent this year. With room to adjust macroeconomic policies to support the economy.
The potential growth rate of the economy could be between 5% and 6%, Zhu Guangyao. Further, A former deputy finance minister, told a news conference in Beijing.
He said that efforts should be stepped up this year to give full play to the economic potential and maintain healthy and sustainable growth.
Citing forecasts from the World Bank and the International Monetary Fund for this year. However, Zhu said the United States and China, the world’s two largest economies, will be the main drivers of global growth.
The World Bank forecasts that global growth could slow significantly to 4.1% this year, before rebounding to 5.5% in 2021.
The World Bank expects China’s GDP growth to reach 5.1% this year. However, closer to its potential sustainable output growth rate at full capacity.
Zhu Rongji spoke highly of China’s GDP growth of 8.1% in 2021, bringing the average annual economic growth in the two years (2020 and 2021) to 5.1%. China will maintain sustainable growth this year, he said.
Li Yang, director of the National Institute of Finance and Development. Said China has room to increase fiscal or monetary support for the economy.
He believes that compared with some developed economies. China’s monetary policy still has some room for maneuver, and there is also room for fiscal policy to support the economy.
Referring to the recent rate cut, he said China has the ability and willingness to step up policy support for the economy this year.
On January 17, the People’s Bank of China cut the key policy rate. The one-year medium-term lending facility, by 10 basis points to 2.85% for the first time since April 2020. in order to reduce the cost of corporate financing.
Luis Kuys, head of Asian economics at Oxford Economics think tank. Said recent changes in the tone of top government officials and policy statements emphasizing the need for steady growth support the OE’s view of more policy easing Measures are coming soon.
“We expect ample liquidity in the interbank market, strong credit growth, and monetary easing in the coming months,” he said. “On the fiscal front, we expect the government to ease its stance. However, mainly by accelerating the issuance and use of local government bonds and speeding up projects. However, approvals, which is consistent with our forecast for a pickup in real infrastructure investment growth in 2022.”