The Chinese economy is facing deflation caused by a serious real estate crisis and consumption levels that are below those observed before the pandemic.
Beijing has implemented several fiscal stimulus measures in recent months, including reducing interest rates and increasing the debt limit for local governments.
However, there are experts who point out that more direct measures will be needed to maintain economic growth.
In his New Year’s speech, Xi Jinping declared that the Chinese economy was under “pressures” to “transform” from “old levers of growth to new ones,” and that it faces “an uncertain external environment.”
The Chinese leader reiterated that he is confident of achieving the official GDP growth target, estimated at 5% in 2024, a goal that some experts doubt that the Asian giant can achieve.
Official economic growth figures will be published in January.
Xi made these statements after the monthly index of Chinese manufacturing activity was published, booming for the third consecutive month.
Export orders reached their highest level in the last four months, “probably due to an increase in orders from US importers anticipating possible tariffs imposed by Donald Trump,” said Gabriel Ng of the Capital Economics firm.
The US president-elect, who will take office on January 20, 2025, promised to strengthen tariffs on Chinese imports.
