原标题：Reuters: China's economic growth rate may rise to 7.9% in 2021, the World Bank forecast
Reuters (cn.reuters.com) reported on Dec. 23, 2020 that according to the China Economic Update the World Bank released on the same day, China’s economic growth is predicted to slow to 2% in the current financial year, but will likely rise to 7.9% next fiscal year given that consumer spending and business investment confidence has strengthened besides improving corporate profits, labor market conditions and incomes.
The update noted that China’s economic recovery remains generally balanced despite the risks: the ongoing Covid-19 pandemic may continue to interfere with economic activities; the impact of the pandemic has aggravated the existing and interrelated weak links between enterprises, banks and governments, which may be a drag of China’s economic growth.
“The global environment remains highly uncertain and this calls for an adaptive policy framework. A premature policy exit and excessive tightening could derail the recovery,” said Martin Raiser, World Bank country director for China, “the withdrawal of fiscal support should proceed gradually, but the focus should shift from traditional infrastructure to more social spending and green investment.”
The report observed China’s consumer and business confidence have increased, and labor market conditions have improved. Market-oriented structural reform, supplemented by fiscal policies aimed at promoting economic rebalancing to expand domestic demand, especially consumption, will help to avoid further decline in potential growth rate, reduce external imbalances and lay the foundation for building a more resilient and inclusive economy.
Aided by an effective pandemic-control strategy, strong policy measures and buoyant exports, China's economy has normalized faster than expected after a sharp decline in the first quarter of 2020. However, to ensure a more balanced and concrete recovery, the World Bank advised China to strengthen the “private demand” and embrace “market-oriented, structural reforms”.
China’s Central Economic Work Conference held in December identified eight key tasks next year. Guarding the bottom line of “six stability” and “six guarantees”, the tone of active fiscal and prudent monetary policies will remain unchanged, but the sustainability will increase on the premise of ensuring the continuity of policy effectiveness, indicating that China’s macro-control is seeking a balance between countercyclical and cross-cyclical.
Find the original article at https://cn.reuters.com/article/wb-china-economy-slow-forecast-1223-idCNKBS28X0C1游戏网
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