China’s economy off to steady start in first two months of 2024: Officials
China has started 2024 on a steady note with the economy underpinned by a stable financial ecosystem and increases in investments, officials reported on Thursday.
The officials, speaking at a media conference, were representatives from the country’s top economic planner the National Development and Reform Commission (NDRC), the Ministry of Finance and the People’s Bank of China (PBOC).
NDRC announced a rebound in private investment, which surged by 2.2 percentage points from the previous year to account for 52.6 percent of total investment during January and February.
This growth was complemented by a 6.3-percent rise in infrastructure investment during the same first two months, growing 0.4 percentage point quicker compared to last year, and thereby bolstering the overall investment landscape, Liu Sushe, the NDRC’S deputy head, added.
Despite a 2.3-percent decline in fiscal revenue year on year for January and February, Chinese Vice
Finance Minister Liao Min noted that there was an increase of 2.5 percent after adjusting on comparable basis.
In addition, fiscal expenditure during this period grew by 6.7 percent, utilizing 15.3 percent of the annual budget, marking the fastest pace of expenditure over the last five years for the same period, Liao explained at the press conference.
Highlighting the financial sector’s contribution, PBOC Deputy Governor Xuan Changneng noted that there have been intensified macro-policy adjustments, ensuring a reasonable expansion in credit and financing.
With ample room for reserve requirement ratio cuts and given shifts in global monetary policies, China aims to enhance the flexibility of its interest rate policy, said Xuan, highlighting China’s robust monetary policy framework.
These developments underscore China’s strategic commitment to fostering a balanced and dynamic economic landscape, leveraging policy and financial tools for a stable and progressive beginning to the year, officials said.