China's economy to improve in 2024

China is anticipated to witness an improvement in economic conditions in 2024, with more favourable opportunities than challenges, according to state media citing officials from the Chinese Communist Party's finance and economy office. 

The macroeconomic policies will persist in providing support for economic recovery, as highlighted in a comprehensive summary of the annual Central Economic Work Conference held from December 11-12. 

During this conference, top leaders established economic targets for the upcoming year.

The official Xinhua report stressed that China currently benefits from low prices, manageable central government debt levels, and a conducive environment for reinforcing the implementation of monetary and fiscal policies. 

Despite these positive aspects, blockages persist in the domestic economic cycle due to weaknesses in demand, consumption, and enterprise investment.

In the coming year, Chinese officials aim to transition from post-pandemic recovery to sustained consumption growth. 

The International Monetary Fund (IMF) recently revised its growth forecast for China upward to 5.4 per cent for the current year, attributing the positive adjustment to a robust post-COVID recovery, while the government has set a target of around 5 per cent.

To foster new areas of consumption growth, China plans to focus on sectors such as smart homes, recreation and tourism, and sports events. The effects of this year's treasury bond issuance, interest rate cuts, and various tax and fee reductions are expected to continue into the next year.

China also commits to monitoring its real estate market, addressing the financing needs of real estate companies, and ensuring the stability of the market. 

The Xinhua report expressed confidence that, with the collective efforts of all stakeholders, the policy objectives of real estate risk prevention and market stabilisation can be fully achieved.

(With Reuters Inputs)