China confident of sustaining recovery momentum as economy firms up
China's economic recovery picked up steam in the third quarter and the country is confident of sustaining the current momentum amid the effective control of the novel coronavirus and the government's sweeping efforts to stimulate demand and consumption.
People visit the 5G communication services exhibition area during the 2020 China International Fair for Trade in Services (CIFTIS) in Beijing, capital of China, Sept. 7, 2020. [Photo/Xinhua]
In the latest World Economic Outlook report released earlier this month, the International Monetary Fund (IMF) projected China's economy to grow by 1.9 percent in 2020, 0.9 percentage points above the IMF's June forecast, making it the only major economy that will see positive growth this year.
For future policy moves, China should maintain the stability and continuity of macro-control policies to consolidate the foundation for sustained recovery, while further increasing policy support for key areas and weak links to achieve development goals and tasks for the whole year, said Wen Bin, chief analyst at China Minsheng Bank.
In a research report on the data, Lu Ting, chief China economist with Nomura, expects China will neither add more easing measures nor start tightening in the near term.
China will carry out what it planned in late May for the scheduled budget and government bond issuance, while on monetary and credit policies, the period of quickly accelerating credit growth is over, according to the report.
"We do not expect any reserve requirement ratio cuts or rate cuts before end-2020, but expect some more liquidity injections via low-profile channels such as medium-term lending facilities and re-lending," the report noted.
