Beijing Hints At Stimulus To Boost First Quarter

The mainland will aim to achieve “a good start” in the first quarter for the economy, the state planner said on Tuesday, signalling authorities could roll out more stimulus measures in the near term to counter slowing growth.

China will strengthen monitoring of its economic situation and improve its “reserve” of economic policies, the National Development and Reform Commission (NDRC) said in a statement.

The world’s second-biggest economy slowed last year as the authorities carried out painful long-term structural adjustments to transition to a more gradual but sustainable growth trajectory. A trade war with the United States has also heaped uncertainty on the country's near-term outlook.

Exports unexpectedly fell the most in two years in December in a sign of mounting pressure on the economy.

Premier Li Keqiang said the country achieved its key economic targets last year, which were “hard-worn”, and seeks a strong start to the economy in the first quarter to establish conditions helpful to meeting this year’s goals, according to state television on Monday.

Sources said last week that Beijing was planning to lower its growth target to 6-6.5 percent this year after an expected 6.6 percent last year, the slowest pace in 28 years.

The proposed target, to be unveiled at the annual parliamentary session in March, was endorsed by top leaders at the annual closed-door Central Economic Work Conference in mid-December, the sources said.

Annual growth of about 6.2 percent is needed this year and next year to meet the ruling Communist Party’s longstanding goal of doubling gross domestic product and incomes in the decade to 2020, and to turn the country into a “modestly prosperous” nation. (Reuters)