China’s GDP growth is expected to be about 6 percent in 2020, The Beijing News said quoting the latest report from the Chinese Academy of Social Sciences (CASS).
As global economic and trade growth slows down, China’s economy is predicted to grow 6.1 percent in 2019, according to a blue book report published by the academy.
Next year, global economy is expected to show a modest recovery, said the report. However, as more external unstable and uncertain factors appear, China’s economic growth is projected to be about 6 percent in 2020.
To maintain China’s GDP growth and employment at reasonable level, prospective on macro-control should be strengthened, the report said. Meanwhile, countercyclical adjustments should be appropriately intensified, as well as the use of fiscal and monetary policy tools.
During the economic downturn period, the government investment should play roles of “ballast” and “stabilizer”, to avoid plummeting in fixed-asset investment and overall economic growth, the report added.
In 2020, fiscal policy should optimize the tax and fee cut plan and put it in place, to ease companies’ burdens. Fiscal expenditure adjustment should be performance-oriented, and strengthen the support for manufacturing transformation and upgrading, and technical transformation, in a bid to motivate enterprise innovation.
The government should raise deficit-to-GDP ratio appropriately and increase the bond issuance, with the focus on supporting vocational education, nursery and kindergarten, healthcare and elderly care.
Meanwhile, under current complicated macro-economic conditions, monetary policy should create reasonably and stable liquidity for real economy, and reduce financing cost. Financial institutions should prevent and mitigate financial risks and avoid financial systematic risk and regional finance risk, the report said.