China targets steady economic growth for 2018

According to the country’s official news agency, Xinhua, China is aiming to maintain a proactive fiscal policy and prudent monetary policy in 2018 while mitigating financial risks.

China will reportedly prioritize investing in social fields namely education, healthcare and public services to boost the quality of economic growth. The country will also promote investment in innovation and entrepreneurship in emerging industries.

In line with the endeavor to rein in financial risks, the country previously announced a new set of rules on three Chinese policy banks to prevent them from over-lending.

In addition, the country is planning to invest CNY800 billion (about $122 billion) in road construction and renovation starting from next year.

On the other hand, the World Bank expects the country’s economic growth to lose steam due to the government’s tighter domestic policy. In line with the country’s new economic management policies laid out during the Central Economic Work Conference, the World Bank revised China’s economic growth forecast down to 6.5% for 2018, down from the estimate of 6.8% for 2017.

Meanwhile, the Chinese economy expanded by 6.8% in the third quarter of 2017. However, the country’s official manufacturing Purchasing Managers’ Index (PMI) slowed slightly to the reading of 50.8 in November from 51 in October.