Favorable conditions support China’s development in 2024

Expanding demand, sufficient policies fuel growth

Speaking of China’s economic growth in 2024, Chinese officials on Thursday said that favorable conditions are stronger than unfavorable ones, and there are still many factors supporting the steady and healthy development of the Chinese economy. Meanwhile, there is ample policy room.

“On the whole, the basic trend of China’s economic recovery and long-term growth remains unchanged. An open China will continue to bring more opportunities for cooperation to the world. We have full confidence in the bright future of the Chinese economy,” Liu Sushe, deputy head of the National Development and Reform Commission, said at a press conference interpreting the macroeconomic situation and policies.

Analysts expect stable economic growth in China in 2024, mainly fueled by supportive macro policies, consumption and investment. Expanding domestic demand will promote imports and attract foreign investment.

China’s economy is expected to run smoothly in 2024, with annual GDP growth of about 5.3 percent, the Center for Forecasting Science of the Chinese Academy of Sciences said in a report on January 9.

“China’s development will still present both opportunities and challenges. In terms of opportunities, a new round of scientific and technological revolution and industrial transformation is reshaping the global economic landscape,” said Liu.

He noted that China’s high-level market economic system is improving constantly, while its industrial system has become more complete. Policy room remains ample.

Liu said that favorable conditions will support China’s growth in 2024, including a vast market with huge potential, innovation-powered new productive forces, and new industries and markets provided by green development.

As China promotes high-quality economic development, the investment demand for enhancing scientific and technological innovation capacity, promoting future industrial development and green transformation will be huge, said Liu.

Liu gave the fast-growing exports of the “new three items” – electric vehicles, lithium batteries and solar batteries – as examples of expanding demand brought about by the green transition.

The green transition, including the new-energy sector, will be a major growth force for China in 2024. The economy will continue to grow with supportive policies and enhanced confidence, Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times.

Lian Ping, president of the China Chief Economist Forum, said that China’s economy will maintain stable growth in 2024 with the support of macro policies, including a proactive fiscal policy and a prudent monetary policy.

“Consumption will maintain stable growth in 2024 and investment growth will be relatively faster than in 2023,” Lian said.