Economy
Chinese authorities promise to stimulate economic growth. Factors that led to China’s economic growth
Chinese authorities are increasingly advocating making economic growth a priority next year as well as helping the real estate sector recover from its record decline. What are the factors that led to China’s economic growth?
The State Council of China, the People’s Bank of China (NBK, the Central Bank of the country) and the China Securities Regulatory Commission (CSRC) in recent days held a series of meetings, the results of which indicate a commitment to policies aimed at supporting the economy and its stabilization, writes Bloomberg. Traders and investors are closely watching how this will affect the current value of the Nikkei 225, a Japanese index that depends heavily on the Chinese economy.
China’s economic growth rate
The Chinese government has called for the implementation of previously announced stimulus measures, noting that current policies could be more effective, according to the outcome of a meeting of the Chinese State Council released by CCTV.
“There is still room for the effect of the measures, and if we do everything right now, it will help stabilize growth next year,” the authorities said. – The economy is recovering and stabilizing, but the foundation is not yet solid.”
China will step up major construction projects, the meeting said, and authorities also promised support for private enterprises and the platform economy.
For its part, the NBK promised to actively support a consumption recovery and encourage financial institutions to support mergers and acquisitions in the real estate sector.
The Chinese Central Bank promised to provide financial support for infrastructure and other major projects, as well as to promote the development of the long-term rental housing market and increase the role of platform companies in boosting domestic demand.
Meanwhile, the CSRC has outlined its policy to help real estate developers. The regulator will allow qualified developers to conduct reverse takeovers, and will approve restructuring of developers and construction companies.
The Chinese authorities promised to revive consumption, support private business and the real estate sector during the annual Central Economic Working Conference held earlier in the day. These promises were the clearest sign that Beijing is focusing on economic growth after several years of a zero-tolerance policy for the coronavirus, Bloomberg writes.
Earlier we reported that the Bank of Japan will maintain the basic parameters of monetary policy.
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo
SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.
China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.
The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.
($1 = 7.1315 renminbi)
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
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