According to a report by the Bank of China, the world’s second largest economy is expected to gradually overcome the negative impacts of the epidemic in the second half of this year, with economic indicators showing improvement amid a raft of supportive policies,
While it acknowledges the headwinds faced by the economy such as rising global inflation, geopolitical tensions and volatile international financial markets might continue to weigh on the economic outlook, the report said domestic demand will play a key role in stabilizing the country’s growth during the second half of 2022.
Its economic fundamentals and potential for long-term growth remain unchanged, the report added.
The country’s employment rate has remained stable and the inflationary pressure has been kept within a moderate range, leaving flexibility for authorities to maneuver macro policies.
Going forward, the report has suggested leveraging fiscal and monetary policies further to help enterprises tide over difficulties, and expand effective investment and stabilize growth.
However, the report also stressed that more efforts should be made to spur consumption, promote the steady development of the real estate sector, and foster long-term competitiveness through technological upgrading and innovation.
