The Chinese economy has recently gained momentum, approaching the official growth target of 5% for the current year, as confirmed by the Governor of the People’s Bank of China (PBOC), Pan Gongsheng.
Pan Gongsheng: Healthy and Sustainable Growth by 2024
During a speech at the HKMA-BRI conference in Hong Kong, Pan emphasized that the growth will be healthier and more sustainable by 2024, affirming the solidity of the Chinese economic framework.
Inflation Differences: Chinese Perspective
Pan Gongsheng highlighted the difference in the inflation issue in China compared to the rest of the world, stating that the consumer price index is gradually touching lows. In contrast, many other countries face concerns about high inflation. However, he warned that inflation in China might increase in the coming months due to recent declines in food prices.
Chinese Economy: Confirmation of Accommodative Monetary Policy
The People’s Bank of China confirms the validity of the accommodative monetary policy, despite inflation hitting bottom and an expected future increase. Pan Gongsheng pledged to strengthen the dialogue on global policy and streamline the entry of foreign financial institutions wishing to invest in China.
Economic Indicators: Robust Growth in the Third Quarter
Chinese economic indicators continue to signal robust growth, with a 4.9% increase in GDP in the third quarter, according to the People’s Bank of China. The PBOC emphasized its commitment to maintaining yuan stability and announced the intention to adjust policy rates to reduce interest rates and stimulate domestic demand.
Chinese Economy: Prudent Monetary Policy for Financial Stability
The PBOC’s prudent monetary policy aims to support stable financial conditions and promote sustainable economic development. In its annual report, the central bank stated its intention to prevent one-way bets on the yuan and counter speculative market behavior to ensure currency stability.
Chinese Economy: Yuan’s Resilience and Strong Position in the Global Market
The yuan has demonstrated its resilience by reaching a central parity rate of 7.1132 against the US dollar, the strongest position since June. This is attributed to China’s positive economic recovery trajectory and the decline in US Treasury yields, boosting investor confidence in the Chinese currency.
Strategic Measures for Long-Term Prosperity
The PBOC’s strategic measures reflect a broader effort to preserve economic stability and growth in China. By carefully managing interest rates and exchange policies, the Chinese central bank is navigating the complex global economic landscape with a clear goal of long-term prosperity. Its determination to maintain a positive trajectory indicates a mindful handling of challenges and a commitment to sustainable economic development.