China’s economy still ‘important engine, stabilising force’ amid global turmoil despite domestic challenges, says PBOC’s deputy governor

Deputy central bank governor Xuan Changneng says China is expected to achieve its economic growth target of ‘around 5 per cent’ this year

But central bank monetary policy committee member Liu Shijin warns there is still uncertainty over new methods to stabilise growth

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The annual conference of the Financial Street Forum in Beijing. Photo: Xinhua

Published: 7:00pm, 9 Nov 2023Updated: 9:01pm, 9 Nov 2023

As the world economy is undergoing a period of profound adjustment with slow and uneven growth, Chinese officials and government advisers warned against the spill over effects of external headwinds and urged structural reforms to unleash domestic potential.

“Currently, the world is facing many uncertainties and challenges,” said Xuan Changneng, a deputy governor at the People’s Bank of China (PBOC), at the annual conference of the Financial Street Forum in Beijing on Wednesday.

“Geographical conflicts are intensifying, trade protectionism is generally on the rise, and high inflation, high interest rates and high debt are prominent features.”

He said China’s economy is expected to achieve its economic growth target of “around 5 per cent” this year, which will top most major economies.

“[China] will continue to be an important economic engine and stabilising force to the world’s economy,” Xuan said.

China’s economy grew by 1.3 per cent in the third quarter from the previous three months, and by 4.9 per cent year on year, with officials suggesting that 4.4 per cent year-on-year growth in the fourth quarter will be enough to achieve the full-year target.

But while the world’s second-largest economy has shown signs of recovery in the past months after a disappointing second quarter, it has yet to secure a solid rebound with sluggish domestic demand and an ailing property sector.