CHINA will spur domestic demand and consolidate and enhance the economic recovery in 2024, the Politburo, a top decision-making body of the ruling Communist Party, was quoted by state media as saying on Friday (Dec 8).

China will continue to implement a prudent monetary policy and proactive fiscal policy in 2024, state media reported the Politburo as saying. The meeting, which was chaired by President Xi Jinping, also said the country will enhance the consistency of macroeconomic policies, the official Xinhua news agency reported.

China will “effectively enhance economic vitality, prevent and resolve risks, improve social expectations, consolidate and enhance the positive trend of economic recovery, continue to promote the effective improvement of quality and reasonable growth of the economy,” Xinhua said.

“Efforts should be made to expand domestic demand and form a virtuous cycle of mutually promoting consumption and investment. We need to deepen reforms in key areas and continuously inject strong impetus into high-quality development.”

Most analysts believe China’s growth is on track to hit the government’s target of around 5 per cent this year, but that compares with a Covid-weakened 2022 and the activity remains uneven.

China’s government advisers will recommend a steady growth target for 2024 and more stimulus to the policymakers’ meeting.

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The government has launched a slew of policy measures in recent months to shore up a feeble post-pandemic economic recovery impacted by a property crisis, local government debt risks, slow global growth and geopolitical tensions.

The central bank has delivered modest interest rate cuts and pumped out more cash in recent months to support growth.

In October, China unveiled a plan to issue one trillion yuan (S$187.2 billion) in sovereign bonds by the end of the year, raising the 2023 budget deficit target to 3.8 per cent of gross domestic product (GDP) from the original 3 per cent.

The Politburo also studied plans for anti-corruption work and reviewed regulations on party disciplinary action, Xinhua said.

The politburo’s meeting on economic work is usually a prelude to the annual agenda-setting Central Economic Work Conference, which is expected to be held around mid-December. REUTERS