China to focus on stability amid economically difficult 2022

Shanghai, China, Dec 11 (EFE).- The Chinese Communist Party will prioritize stability when facing economic policy in 2022, expected to be marked by the contraction of demand, supply problems and lower expectations.

The party ended its central economic work conference Friday night, a yearly summit to establish economic bases.

“The economic work of next year must prioritize stability and, at the same time, seek progress,” a party statement read, calling for action to “protect macroeconomic stability, keep the main economic indicators within appropriate margins and maintain social stability.”

These tasks seek to pave the way to the party’s 20th National Congress, scheduled for October 2022, in which President Xi Jinping aspires to a third term after the two-term limit was eliminated in 2018.

The statement also warns of an “increasingly complicated, discouraging and uncertain external environment,” and the “strong resistance” of the Chinese economy when it comes to claiming “confidence” to face difficulties.

The country’s economy has slowed – its GDP grew only 4.9 percent year-on-year in the third quarter, one of the lowest figures in decades – but the party now seems to be focusing on “reasonable and quality” growth.

In 2022, according to the document, China will maintain a “proactive” fiscal policy and a “prudent, flexible and appropriate” monetary policy that allows it to maintain liquidity “at abundant and reasonable levels.”

The party also proposed to deepen its tax cuts and financial “risk reduction” campaigns, boost the labor market so young people can find work more easily, or strengthen the support of financial institutions to sectors of the “real economy,” especially small and medium enterprises. EFE

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