MNI BRIEF: China Likely To Grow By 5% In 2024 - Advisor
The Chinese economy is expected to grow by 5% in 2024, as consumption and manufacturing investment will likely further recover amid more proactive macroeconomic policies, and upcoming new reforms will help lift expectations, said a policy advisor in an interview with the PBOC-run magazine China Financialyst.
Consumption, manufacturing and infrastructure investment will be the main growth drivers in 2024, while real estate investment and export growth are expected to stabilise, said Zhang Ming, senior fellow and deputy director at the Institute of Finance and Banking at the Chinese Academy of Social Science. The upcoming Third Plenary Session of the 20th Central Committee of the Communist Party will introduce a new plan of reform and opening up which will significantly boost consumer and business confidence, said Zhang.
Monetary policy should keep liquidity reasonably ample and financing costs at a reasonable level. Structural monetary tools to support key sectors should better coordinate with fiscal policy to avoid an imbalanced allocation of resources. (See MNI INTERVIEW: PBOC To Boost Targeted Facilities - Advisor)