Last Monday, April 8, Chinese Prime Minister Li Qiang held a meeting with economic experts and representatives of the business community.
At the mentioned event, the Prime Minister of the Asian country stated that the state economic system is currently on a trajectory of sustainable growth. At the same time, he acknowledged the problems. For example, the Prime Minister noted that there is currently a shortage of demand in China. Li Qiang promised to take measures and implement solutions aimed at removing barriers to the economic growth of the Asian country.
It is worth noting that the discussion of the current condition of the Chinese economic system took place about a week before the data on China’s results in this measurement of state activity for the first quarter of the current year will be released.
Li Qiang discussed with experts and entrepreneurs the measures that still need to be taken to solve problems related to internal difficulties and minimize the negative impact factors that have formed in the external environment and belong to the category of global circumstances with a large-scale spreading geography. In this context, the Chinese Prime Minister drew attention to the problem of uncertainty of the future prospects in the plane of the international economy.
The official message of the Asian country’s authorities following the meeting on Monday quoted Li Qiang’s statement that Beijing should focus on introducing innovations in the technology sector and the area of science. According to him, this action strategy will ensure the implementation of the process of modernization of China’s industry. Li Qiang is also convinced that the introduction of innovations will be a factor in solving the problem of insufficient solvent demand. The Prime Minister is currently focused on stimulating domestic demand.
The National Bureau of Statistics intends to release information on the results of the functioning of China’s economic system for the first quarter of the current year next Tuesday, April 16. These data will allow experts and analysts to form an understanding of the pace of economic recovery in an Asian country that faced significant damage during the coronavirus pandemic and found itself in a zone of the negative impact of significant problems caused by a protracted and deep crisis in the local real estate sector.
Beijing intends to achieve the goal of gross domestic product (GDP) growth of about 5% this year. The corresponding intention from the point of view of the prospects for materialization is realistic but requires significant measures of state support for the economic system of an Asian country and does not belong to the category of what can be called a guaranteed result.
On Monday, Li Qiang said that the current strategy of China’s macroeconomic policy demonstrates an acceptable level of effectiveness. In this context, he also noted that the situation in the external environment is becoming more complicated. Separately, the Prime Minister underlined that the global economy is becoming a more severe space and at the current stage of its existence is characterized by a high level of uncertainty. Li Qiang stated that China must work hard to overcome the challenges that are generated by the present configuration of economic reality.
The Prime Minister stated that it is necessary to increase the consistency of macroeconomic policy. Also in this context, he noted the importance of making this strategy even more effective as part of its application in the practical plane.
During the meeting, economic experts and representatives of the business community stated that the number of positive development factors is increasing. In this case, the sources of impact on the dynamic of the economy of China are implied. Li Qiang’s interlocutors also said that confidence strengthening on the part of the market is currently being recorded. At the same time, they noted that the economic growth of the Asian country still faces various obstacles.
Li Qiang stated that China’s economy has a solid foundation and many advantages. Also in this context, he expressed confidence that the long-term growth trend will not weaken. It is worth noting that recently the Prime Minister has often declared this vision of the condition of China’s economic system and its prospects.
It is worth noting that some investment banks and international organizations have already improved forecasts for the growth of the Asian country’s economy. The outlook estimates were revised after the data for January and February were released. In this case, it means indicators of economic development. The largely optimistic start to the current year is due to an improvement in the situation in the sphere of consumption and an increase in investment volumes.
Citi experts expect that in 2024, China’s economy will show growth of 5%. It is worth noting that in the previous version of the forecast of these analysts, the specified indicator was 4.6%. Nomura experts have also improved their expectations regarding the dynamic of the economic system of the Asian country. They predict that the growth will be 4.2%. Their previous vision for the prospects of China’s economic system in the current year envisaged that the mentioned figure would be equal to 4%.
On Monday, the Asean+3 Macroeconomic Research Office, a Singapore-based macroeconomic surveillance organization, released its forecast. Experts of this organization expect that the Chinese economy will show growth of 5.3% in 2024. In their opinion, the pace of the positive dynamic will accelerate in the foreseeable future. Experts also noted that Beijing still has enough space for maneuvering in macroeconomic policy and can cope with the challenges of the present historical moment.
Wang Tao, an economist at UBS Group, as part of comments on the upcoming data on the results of China’s economic development in the first quarter of 2024, said about the expectation that the corresponding dynamic to improve, but predicted a slowdown in GDP growth year-on-year. According to the expert, due to the high base of 2023, real estate sales are likely to decrease. In this case, it means a change in the indicator on an annual basis. Wang Tao also expects a slowdown in retail sales and an increase in industrial production.
As we have reported earlier, Economist Says About Need for China to Return to Basics.
