China will step up policy adjustments to support growth: State media

BEIJING - China will step up policy adjustments and strengthen policy coordination to support the economy in 2023, according to an official statement issued on Friday, following an agenda-setting meeting of the country’s top leaders.

The closed-door meeting of top leaders and policymakers who gathered to chart the economy’s course in 2023 has been watched closely by investors amid expectations that Beijing would ramp up support for the world’s second-largest economy.

China will implement a proactive fiscal policy and a prudent monetary policy next year, the statement said. It was issued after the annual Central Economic Work Conference, held from Dec 15-16, and published by the official Xinhua news agency.

Fiscal policy will be stepped up and become more efficient, maintaining the necessary intensity of fiscal spending, while monetary policy will be precise and forceful, keeping liquidity reasonably ample, Xinhua reported.

“We should continue to implement proactive fiscal policies and prudent monetary policies, strengthen macro policy regulation, strengthen coordination and cooperation of various policies, and form a joint force to promote high quality development,” Xinhua cited the statement as saying.

China should better coordinate epidemic prevention and control, and economic and social development, it added.

China’s economy faces relatively great pressure from shrinking demand, supply shocks and weakening expectations, Xinhua said.

China will take steps to expand domestic demand, prioritise consumption recovery, and achieve major economic targets in 2023, according to the statement. It did not elaborate on targets.

Top leaders reiterated that China will stick to its principle of “homes are for living in, not for speculation”, and pledged to support strong housing demand, the statement said. REUTERS