China’s economy to soar in 2023: Precise monetary policy at the forefront
In its quarterly policy implementation report published on Friday, the People’s Bank of China (PBOC) stated that China’s economy is predicted to recover generally in 2023 and that it intends to implement a precise and forceful monetary policy.
The PBOC plans to back domestic demand expansion, stabilize economic growth and prices, and prevent excessive stimulus. The PBOC warned that the external environment is challenging, and the foundation of the domestic economic recovery is not firm.
Furthermore, the report emphasized that the property sector is transitioning and that the pressure of balancing local government fiscal revenue and expenditure remains. The PBOC will observe inflation trends closely and maintain energy and food prices stable.
The report is similar to the previous one, and the government is expected to announce economic targets and policies for 2023 during the annual parliamentary meeting starting on March 5. Premier Li Keqiang also stated that China’s economy is improving but still faces significant challenges.
The PBOC will ensure sufficient liquidity and maintain effective credit growth. The central bank pledged to enhance social expectations and boost confidence, emphasizing stabilizing economic growth, employment, and prices.
Although the property sector has exhibited a slight recovery, the PBOC stated that it will provide reasonable financing demand in the sector and not use real estate as a short-term solution to stimulate the economy. Finally, the PBOC and banking and insurance regulator encouraged commercial banks to issue loans for rental housing groups to purchase houses.