Saturday , November 2 2024
Home / Perspectives Pictet / Work in progress in China

Work in progress in China

Summary:
The Chinese government’s work report for 2018 presents its priorities for growth and employment and lays down the roadmap for monetary and fiscal policy this year.China’s National People’s Congress (NPC) meetings are being held during March 5-20. On the first day, Premier Li Keqiang delivered the government work report, in which he outlined the major achievements of the past five years and laid out the key objectives and initiatives for 2018. The contents of the report are largely in line with our expectations and reflect the themes of the Communist Party’s 19th National Congress held last October.The report emphasises the government’s focus on quality of growth and continued efforts on structural reforms. The government’s stance on monetary and fiscal policies is similar to 2017, with

Topics:
Dong Chen considers the following as important: , , , ,

This could be interesting, too:

Cesar Perez Ruiz writes Weekly View – Big Splits

Cesar Perez Ruiz writes Weekly View – Central Bank Halloween

Cesar Perez Ruiz writes Weekly View – Widening bottlenecks

Cesar Perez Ruiz writes Weekly View – Debt ceiling deadline postponed

The Chinese government’s work report for 2018 presents its priorities for growth and employment and lays down the roadmap for monetary and fiscal policy this year.

Work in progress in China

China’s National People’s Congress (NPC) meetings are being held during March 5-20. On the first day, Premier Li Keqiang delivered the government work report, in which he outlined the major achievements of the past five years and laid out the key objectives and initiatives for 2018. The contents of the report are largely in line with our expectations and reflect the themes of the Communist Party’s 19th National Congress held last October.

The report emphasises the government’s focus on quality of growth and continued efforts on structural reforms. The government’s stance on monetary and fiscal policies is similar to 2017, with monetary policy set to stay neutral with a tightening bias, but fiscal policy continuing to be proactive.

China’s GDP growth target remains “about 6.5%” for 2018. The government also set itself the goal of reducing energy consumption per unit of GDP by 3% in 2018 and promises to reduce the emission of some major pollutants by at least 3%. The target for headline consumer price inflation remains at 3%.

Supply-side reforms will continue to be pushed forward, with the aim especially of cutting excess industrial capacity. In addition, the government promises to continue putting efforts into cultivating new drivers of growth, to further implement mixed-ownership reforms and to improve the investment environment.

All in all, the government work report of 2018 is broadly in line with our expectations regarding China’s growth outlook and the government’s policy priorities for the year. In our view, the combination of policies outlined in the report will likely ensure fairly stable growth in 2018, and, at the same time, foster longer-term improvements in the economy. Our GDP forecast of 6.5% and headline inflation forecast of 2.5% for 2018 remain unchanged.

About Dong Chen
Dong Chen
Dong Chen is senior Asia economist, Pictet Wealth Management. - Twelve years of working experience in macroeconomic research - Extensive knowledge about asset allocation and multi-asset class portfolios - Rich client-facing experiences with high-net-worth clients across Asia - Rigorous training in economics and comprehensive knowledge about Asian economies and business - Strong analytical skills and solid background in statistical/econometric analysis - Strong communication / presentation skills - Native Mandarin Chinese speaker and fluent in English Do not hesitate to contact Pictet for an investment proposal. Please contact Zurich Office, the Geneva Office or one of 26 other offices world-wide.

Leave a Reply

Your email address will not be published. Required fields are marked *