New Economic Era
Looking ahead at the opportunities and challenges facing China’s economy in 2019
In 2019 the world economy will see a recovery momentum while the Chinese economy will maintain its long-term development prospects with resilience and great potential. However, there are both external uncertainties and internal downward pressures.
The new year marks the 70th anniversary of the founding of the People’s Republic of China in 1949 and is a key year to realize the goal of building a moderately prosperous society in all respects by 2020. China is expected to achieve 6.3-percent economic growth, follow a sustained and healthy development path, and maintain social stability.
China’s economy has entered a new era of high-quality development where domestic demand is the main driving force and the service sector the leading industry. This is attributed to supportive state policies, the impetus provided by reform, the dividends of opening up, a huge market potential, as well as economic stability and resilience.
However, the global economy faces increasing risks of adjustment as the external environment undergoes extensive and unprecedented changes. Protectionism is surging in trade and investment and major countries are tightening their monetary policies. In the domestic market, impacts of the trade friction between the United States and China have begun to show. Some enterprises are suffering from operational difficulties, industrial structures need reconstruction, and issues such as financial disturbance risks have led to a rising downward pressure.
On the issue of completing the building of a moderately prosperous society by 2020, the goal of doubling the size of the Chinese economy of 2010 can be realized if the average GDP growth rate in 2019 and 2020 reaches 6.1 percent. So, China’s economic development remains within a reasonable range.
From the perspective of high-quality development, it’s essential to avoid excessive