MNI POLICY: China Economy Set For "Reasonable Range" In 2020

     BEIJING (MNI) - China achieved its major economic goal for 2019, with

stable growth despite "obvious domestic and external challenges", said Ning

Jizhe, head of the National Bureau of Statistics Friday, noting the country is

still faces strong headwinds this year.

     Ning said China will keep the economy on track, ensuring a "reasonable

range" for GDP growth with counter-cyclical measures. 

     Here are major takeaways of NBS' press conference 

     - Major economic indicators show positive signs for Q4, particularly in

November and December. Industrial output, retail sales and fixed-asset

investment all improved, helping keep annual growth in the targeted range.

Counter-cyclical moves, along with total tax and fee cut in 2019 totalling

around CNY2.3 trillion, helped boost boost the economy. 

     - Consumption was again the biggest driver, contributing 57.8% to total

growth in 2019 and is expected total about 60% of the economy in 2020 with an

improved environment for consumers as household disposable income rises.

     - China will focus on improving the quality and effectiveness of its

economic growth rather than target high growth rate and has has ample of tools

to realize them as the fiscal deficit ratio is still low and forex reserves are

adequate. 

     - Fiscal and financial risks are under control with a stable macro leverage

ratio and falling micro leverage ratio. The micro leverage ratio fell to 56.9%

as of the end of last November, 0.3 percentage point lower than that in same

period of 2018. 

     - The China-U.S. phase one deal will benefit both countries as well as the

world. The two sides have enforced some tariff exceptions since November, even

though the majority of additional tariffs remain. China will fulfil its

commitment in the agreement and deepen bilateral cooperation with the US. 

     - The birth rate in 2019 fell to 10.48%, the lowest annual growth rate

since 1949. The total population of the country was been 1.4 billion as of the

end of 2019.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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