BEIJING — The Chinese government will make fiscal policy more forceful and monetary policy more flexible to keep growth in a proper range in 2016, an official statement showed on Dec 21.
“China’s current proactive fiscal policy needs to be more forceful, and the fiscal deficit ratio needs to be raised gradually,” according to a statement after the Central Economic Work Conference.
The prudent monetary policy needs to be more flexible so as to create appropriate monetary conditions for structural reforms next year.
The conference opened on Dec 18 to review China’s economic performance in 2015 and map out plans for 2016.
“Fulfilling major economic targets of 2015 will mark the smooth completion of the 12th Five-Year Plan (2011-15) and allow the country to develop on a higher platform,” the statement said, adding that the economy maintained medium-high growth in 2015, economic structure optimized and people’s livelihood improved. In the first three quarters, China’s economy expanded 6.9 percent year on year, generally in line with government target at around 7 percent.
The country’s economic growth still enjoys sound fundamentals, with enormous potential, huge resilience and ample room for further growth, the statement said.
Meanwhile, there are still many difficulties and challenges, especially the problem of severe structural overcapacity.
To promote economic growth, China should pay more attention to growth quality and efficiency, as well as to structural reforms on the supply side, the statement said.
China should intensify efforts of structural reforms, raise effective supply and make supply structure more adaptable and flexible following the concept of innovative, coordinated, green, open and shared development.
Next year, China should continue to “keep economic growth in a proper range” and raise long-lasting growth impetus to pursue a sound beginning year for the 13th Five-Year Plan, the statement showed.