China’s Economy to See Downward Trend and Becomes Stable as New Momentum Emerges
2016 will be the first year of the 13th Five year Plan, although the whole economic situation is grim, but expected to see the end of the downward trend and gradually becomes stable as new momentum emerges. Macro-control is expected to focus on boosting the supply and demand, mass innovation, reform and opening up along with fiscal and monetary policies.
The year 2016 is the first year of the 13th Five-year Plan. On the whole, the economic situation is quite grim, but is expected to see the end of the downward trend and gradually become stable as new momentum emerges. Macro-control is expected to focus on boosting supply and demand, reform and opening-up, mass innovation, as well as fiscal and monetary policies. The Chinese economy still has a lot of room to grow and develop to a medium and long term status. Its crucial to push forward the reform and open up and accelerate the innovation driven transformation, which nurtures new growths points that will bolster the country’s international competitiveness, improve people’s livelihood and optimize the economic structure.
The country’s economy is facing pressures from economic slowdown, hang over of previous stimulus from 2012 and structural adjustments that triggers a downward trend that was persisted for 11 straight quarters. There are positive signs, but the country has been accelerating its economic restructuring and industrial upgrading while pushing forward the new industrialization, urbanization, information technologies and agricultural modernization to unleash huge potential for demand and supply.
New growth momentum is breeding as China is carrying out the new type of urbanization plan to speed up newly emerged industries, deepen reforms, encourage mass entrepreneurship and innovation to open up and release more dividends. While the job market is stable, the property sector is facing easing downward pressure, and then infrastructure investment accelerates and accumulative effects and composite force of policies and measures is seen to stabilize growth will emerge. Furthermore the decrease of corporate management costs will help accelerate the pace of market adaption.
The fifth plenary session of the 18th CPC Central Committee drew an economic and social development blueprint for the next five years, setting new goals and points out the concept of development and major measures are expected to enhance the market confidence and to stimulates the social vitality. The Chinese economy still has the potential to maintain medium to high level of growth and it can be predicted that the GDP growth will stabilize and likely to achieve a rate of 6.7 percent for 2016.