China’s economic downturn ramps up urgency for Beijing to keep market expectations in check
- China’s GDP growth seen weakening to 2.9 per cent in first-quarter 2022, Nomura economist forecasts
- Beijing is urged to be cautious in introducing policies that have a contractionary effect
China has pledged to keep market expectations anchored and manageable in the coming year, according to a senior economic official, despite strong headwinds and growing pessimism about the nation’s economic outlook.
“There have been fluctuations in terms of market expectations and corporate confidence,” Ning Jizhe, deputy head of China’s National Development and Reform Commission, the country’s top economic planner, said in an interview with Xinhua published on Tuesday. “The importance of keeping expectations stable has become more prominent.”
He specifically pointed to “uncertainties” surrounding economic operations amid the ongoing pandemic.
Despite Beijing’s recent easing in its macroeconomy policy stance, market concerns over China’s economic downturn persist.