China will keep backing economy as pressure persists

China is going to maintain policy support for the national economy, still facing downward pressure as well as difficulties after better-than-anticipated first quarter surge. That’s what a top decision-making body of the Communist Party informed on Friday.

In fact, the statement from the politburo showed up just two days after China had posted steady 6.4% annual surge in January-March, thus confounding expectations for a further deceleration, as industrial output rallied steeply and consumer demand demonstrated signs of improvement.

Referring to a politburo meeting headed by President Xi Jinping, the official Xinhua newы agency informed that while fully affirming the country’s achievements, the government needs to clearly see that there’re still a lot of difficulties and issues in economic operations.

The external economic environment is generally tightening, while the domestic economy is facing downward pressure.

The agency added that China is going to implement counter-cyclical adjustments in an appropriate and timely manner, while the pro-active fiscal policy is going to become more effective and forceful, so the prudent monetary policy is going to be neither too loose nor too tight.

For this year, the Chinese cabinet has uncovered tax as well as fee cuts accounting for 2 trillion yuan to soothe burdens on businesses, while the country’s major financial institution has cut banks' reserve requirement ratios up to five times since early 2018 to increase lending.

On Friday, the Chinese government repeated that they’ll effectively underpin the private economy as well as the development of medium-sized and small businesses.

The Chinese government will strike a balance between stabilizing economic surge, controlling risks, promoting reforms and also improving citizens’ livelihoods.

China's economic surge is anticipated to speed down to a near 30-year minimum of 6.2% in 2019.

china economy pbc - people's bank of china