Deutsche Bank: Central Economic Work Conference releases strong and positive policy support signals

In a recent report, Xiong Yi, Chief Economist for Deutsche Bank in China, stated that the Central Economic Work Conference has sent a strong and positive signal for supportive policies. Deutsche Bank has raised its forecast for China’s 2024 annual Gross Domestic Product (GDP) rise to 5%.

Xiong Yi said that this meeting has made positive deployments around fiscal and monetary policies, as well as key policy tools for consumption and real estate industry, which further boosted the market’s confidence in strong policy stimulus that China will implement in 2025.

Deutsche Bank also maintains its forecast for China’s economic growth rate of 5.2% in November, raises the rise rate to 5.2% in the fourth quarter of 2024, and maintains the GDPrise forecast of 4.8% for 2025.

Xiong Yi believes that the Central Economic Work Conference pointed out that the current external environment is facing increasingly severe challenges, but it pays more attention to the internal pressure of weak domestic demand. The conference proposed that by 2025, it is necessary to “maintain economic stability rise” and “maintain overall stability in employment and prices”. This statement indicates that despite external challenges, the target for rise next year is expected to remain at 5%, the same as in 2024.

“Vigorously boosting consumption” ranks first in the key tasks for 2025, ahead of previous key issues such as technological innovation and structural reform. It is expected that the government will also introduce more measures to promote the expansion of service consumption in the future.

Source: Sina

Author: Sina.com