Economic stability to be top priority of Chinese policymakers in 2022

Policymakers said they will intensify fiscal spending to boost domestic demand, raise infrastructure investment and are likely to fine-tune regulatory measures in the energy sector to stabilise production and growth.

Top policymakers, who met at the annual Central Economic Work Conference last week, decided that supportive policies should be implemented ahead of schedule, and all regions and departments should actively roll out policies conducive to economic stability, according to a statement released after the meeting.

Experts said that the emphasis on economic stability signals that China will pursue a more pro-growth policy to avoid deep economic slowdown, as the world's second-largest economy is likely to face strong downward pressure in the first half of next year before rebounding in the second half, official Chinese media reported.

Most economists agreed that setting a reasonable growth target for next year is important for the government to better anchor the weakened market expectations.

Policy support needs to be further intensified, because the Chinese economy may continue to be threatened by weaker growth of consumption and investment, disruptions of the supply chain, resurgence of the COVID-19 pandemic and the negative spillover effect of developed economies exiting their ultra-loose policies, they said.

Fibre2Fashion News Desk (DS)