The economy is expected to show stable performance this year

The Xiuying Port container terminal in Haikou, Hainan province (southern China). [Photo/China News Service]

China has pledged to make concerted efforts to help the economy overcome challenges at home and abroad, boosting market confidence that the domestic economy will maintain a stable performance this year, officials and officials said. experts.

Despite downward economic pressure intensified by emerging uncertainties, China is fully confident and capable of achieving sustainable and healthy economic development, Vice Premier Han Zheng said when meeting with domestic and foreign entrepreneurs on Thursday. at the Boao Forum for Asia 2022 Annual Conference in Hainan Province.

This year, macroeconomic policies are characterized by greater intensity, greater support for the real economy and the grassroots, and implementation at an earlier date, Han said, adding that China’s economy recorded a stable overall performance.

China will also make efforts to minimize the economic impact of COVID-19, ensure the stability of industrial chains and energy supply, and improve the business environment with equal treatment for all types of market players. , said Mr. Han, quoted by the Xinhua news agency.

Yi Gang, governor of the People’s Bank of China, the country’s central bank, also pledged at the forum to strengthen efforts for the real economy by maintaining an accommodative monetary policy throughout the year and by being ready to support small and medium enterprises with more measures if necessary.

Yi also stressed the central bank’s commitment to maintaining price stability. “Price stability is our political priority,” Yi said during a forum session on Friday, adding that it is particularly important in agricultural production, as well as in the production and import of key energies, such as coal, oil and gas.

Experts said the remarks signaled that greater policy efforts on multiple fronts may be underway to shore up China’s economy and cushion an increase in challenges at home and abroad.

After recording better-than-expected GDP growth of 4.8% year-on-year in the first quarter, China’s economy now faces more headwinds as the resurgence of COVID-19 hurts domestic demand and stability. of the supply chain.

Volatile external factors are also on the rise, as geopolitical tensions have inflated global energy and food prices, while monetary tightening in developed economies has tightened global liquidity conditions.

Policy responses accelerated as the central bank and State Administration of Foreign Exchange proposed 23 measures on Monday to support the real economy, focusing on helping market players hit hard by their troubles, the smoothing domestic economic circulation and promoting foreign trade.

Wang Chunying, spokesperson for the administration, said Friday that in accordance with the 23 measures, it will make more enterprises eligible for trade facilitation policies, strengthen export credit insurance support and help companies qualified in cross-border financing.

With multiple political support and better containment of COVID-19, China’s economy is expected to rebound in the second half after slowing in the second quarter, said Hu Yifan, regional investment director and head of macroeconomics for Asia-Pacific. with UBS Global Wealth Management.

Hu said she expects China to implement supportive policies at a faster pace, which could eventually include stronger measures to boost consumption and moderate easing of real estate sector restrictions.

Wen Bin, chief researcher at China Minsheng Bank, said the central bank should make more use of structural monetary tools to support agricultural production and efficient use of coal, thus helping to strengthen the foundations of a price environment. stable.

It was decided at a central bank meeting on Friday to step up support for agricultural production and the supply of key energy while putting in place policies to support small businesses and vulnerable groups affected by the crisis. COVID-19.

Ouyang Shijia and Ma Zhiping in Boao contributed to this story.

About Warren Dockery

Check Also

UAE and Greece to set up $4.2 billion investment initiative

Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the …