China 'confident' of hitting economic goals
October 8, 2024
China on Tuesday expressed certainty it could meet its development goals for 2024 without another stimulus package, despite a sluggish economy.
"We are fully confident in achieving the goals of economic and societal development for the year," said Zheng Shanjie at a news conference. Zheng is the head of China's National Development and Reform Commission, and thus the country's top economic planner.
"We are also fully confident in maintaining stable, healthy and sustainable development," he added.
Zheng disappointed investors, however, by not announcing further measures to drive economic growth like he did last month.
Little optimism for property sector
China's economy has been drastically slowing in recent years, affected by decreasing consumption, local government debt, and a major housing crisis.
Although last month's measures were mainly targeted at making it easier for middle-class Chinese families to buy homes, analysts still believe the country's 5% growth target is too optimistic.
The People's Bank of China has cut interest rates on mortgages and lowered the amount of money lenders must keep on hand. However, experts have warned more substantial reforms are needed if China wants to boost its property sector following the downfall of development firms like Evergrande.
The economic slowdown has also had an effect on Germany, where for years Chinese industrial orders at firms like Volkswagen and BASF drove profits. German exports to China tumbled by 9% in 2023 after decades of robust sales.
Further complicating the trade relationship, last week the EU approved major tariffs on Chinese electric vehicles, prompting German fears of a trade war. Indeed, later on Tuesday, Chinese officials announced an increase in tariffs on European brands, such as Remy Martin.
es/ab (AFP, Reuters)