China is ‘fully confident’ of achieving 2024 economic goals, NDRC chair says

11:15 pm Monday, October 07th, 2024

BEIJING (Reuters) -China is “fully confident” of achieving its full-year economic and social development targets, the chairman of the country’s economic planner Zheng Shanjie said on Tuesday, adding some of 2025’s budget will be issued this year to support projects.

A package of economic stimulus measures unveiled by the authorities since late September sent Chinese shares soaring on Tuesday to two-year highs, extending a rally after markets reopened from a week-long National Day holiday.

Investors and economists are expecting more policy support on the fiscal side to underpin the market’s optimism.

China’s economy remains largely stable but is facing more complex internal and external environments, Zheng, chairman of the National Development and Reform Commission (NDRC), told a press conference.

“The downward pressures on China’s economy is also increasing with some industries seeing rat-race competition,” Zheng said.

To support local governments, China will issue 100 billion yuan ($14.12 billion) from next year’s central government budget and another 100 billion yuan for key investment projects by the end of this year, Zheng said.

The country will also quicken fiscal spending and “all sides should keep making efforts more forcefully” to strengthen macroeconomic policies, he added.

The government set a growth target of around 5% this year, but economic indicators showed growth momentum waned since the second quarter.

China unveiled its most aggressive monetary stimulus package since the COVID-19 pandemic and a flurry of property market support in late September, a sign officials are becoming increasingly anxious and keen to reverse the economic downturn.

A vice NDRC chairman said at the same press conference that China’s economic growth remained “generally stable” over the first three quarters.

($1 = 7.0805 Chinese yuan)

(Reporting by Kevin Yao and Joe Cash; Writing by Ellen Zhang; Editing by Muralikumar Anantharaman and Jacqueline Wong)