BEIJING (Reuters) – China will further adjust its policies to support economic recovery in 2024, state media said on Tuesday, following a meeting of the country’s top leaders.

Investors are hanging on announcements on reforms expected next year, as Beijing struggles to prop up its economy amid a worsening housing crisis and rising local government debt.

China will focus on supporting demand next year, state media said, citing the results of the annual Central Economic Work Conference held Dec. 11-12, during which officials Chinese politicians have set economic targets for 2024.

“We need to put in place more policies aimed at stabilizing stakeholders’ expectations, stabilizing growth, and stabilizing employment,” state media said, citing senior officials led by President Xi Jinping, present at the the meeting.

“It is necessary to strengthen counter-cyclical and inter-cyclical adjustments, implement proactive fiscal policy and prudent monetary policy, and strengthen innovation and coordination of policy tools.”

The Politburo, the Communist Party’s top decision-making body, said on Friday that fiscal policy would be slightly strengthened and would be “flexible, moderate, precise and effective” to contribute to economic recovery.

China plans to implement tax cuts and a new round of budget reforms, state media said, adding that the government will improve the structure of budget spending to support strategic tasks.

China will maintain a reasonable and sufficient level of liquidity, and ensure that the size of social financing and money supply matches economic growth and price level targets, according to state media.

China will encourage financial institutions to further support technological innovation, green transformation, small businesses and the digital economy.

GROWTH OBJECTIVE FOR 2024

The leaders also pledged to “facilitate stability through progress”, which could suggest a focus on growth, and to “build before tearing down”, which could suggest increased support for the tourism sector. ‘real estate.

“To continue to encourage economic recovery, we must overcome certain difficulties and challenges,” state media said. “The main problems are insufficient demand, overcapacity in certain sectors, low household expectations and many hidden risks.”

The government could set a growth target of around 5% for 2024, according to some sources. To achieve such goals, Beijing would need to step up its stimulus measures, as this year’s growth benefited from base effects linked to the COVID-19 pandemic in 2022, analysts point out.

Chinese leaders traditionally approve a growth target at this meeting in December, a target announced publicly at the opening of the annual meeting of Parliament, which is usually held in March.

(Reporting from the Beijing office and Kevin Yao, Corentin Chappron, edited by Blandine Hénault)

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