Updated December 19th, 2023 at 21:36 IST

China can achieve 5% economic growth in 2024: Central bank advisor

The expert, Wang Yiming emphasised that China possesses room to bolster economic support.

Reported by: Business Desk
China | Image:Pexels
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Wang Yiming, a central bank policy advisor has said that China forecasts 5 per cent economic growth in 2024. He mentioned at an Economic Forum in Beijing that this projection hinges on a 4 to 5 per cent rise in investment, a 6 to 7 per cent increase in consumption, and the resurgence of export growth.

Highlighting the favourable economic scenario, Wang emphasised that China possesses room to bolster economic support. This is attributed to its relatively low central government debt burden and subdued consumer prices, which experienced their sharpest decline in three years in November.

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Wang hinted at the potential for interest rate cuts, citing the Federal Reserve's probable halt in raising rates. However, he acknowledged constraints like the substantial interest rate gap between China and the US and apprehensions about the repercussions on banks.

During the recent annual Central Economic Work conference from December 11-12, Chinese leaders pledged policy adjustments to bolster economic recovery in the upcoming year, aligning with the government's anticipation of achieving a growth rate of around 5 per cent this year.

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Published December 19th, 2023 at 21:36 IST