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Experts: 2022 GDP growth to hit 5-6%

By ZHANG YUE and ZHOU LANXU | China Daily | Updated: 2022-01-28 09:37
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A truck loads containers at Tangshan Port, North China's Hebei province, April 16, 2021. [Photo/Xinhua]

China is likely to achieve a GDP growth rate of between 5 and 6 percent in 2022, which is in line with forecasts by many global institutions and think tanks, economists said on Thursday.

Liu Shijin, deputy director of the Economic Affairs Committee of the National Committee of the Chinese People's Political Consultative Conference, said during a meeting with both domestic and foreign media that China still has very large structural growth potential. Its capacity for growth as a developing country will be underpinned by momentum generated from the process of industrial and consumption upgrading.

"China is likely to register a relatively slower GDP growth pace in the first half of 2022 and a faster one in the latter half. I believe this year's growth predictions made by global institutions of 5-5.5 percent can be achieved," he said.

Liu said that in the coming decade and beyond, the country's economic growth will be catalyzed by developing metropolitan areas, shoring up weak links, increasing the number of middle-income earners, consolidating basic research capacities and nurturing digital economy and green growth.

Justin Yifu Lin, dean of the Institute of New Structural Economics at Peking University, said China should be able to achieve a 6 percent growth rate in 2022 and quite notable steady growth before the year 2035. He said this is because China enjoys rich potential in making use of the industrial and technology development gap between itself and developed economies. Also, the country's savings rate remains high by global standards.

The National Bureau of Statistics said annual profits of major Chinese industrial firms surged 34.3 percent to 8.71 trillion yuan ($1.37 trillion) in 2021 amid buoyant industrial production. Yet, the growth has slowed to 4.2 percent year-on-year in December versus 9 percent in November.

Li Qilin, chief economist at Shanghai-listed Hongta Securities, said the price growth in raw materials is expected to slow down thanks to rising supplies. This will help alleviate the cost pressure felt by midstream and downstream manufacturers and boost their willingness to restock and invest.

On top of the fading cost pressure, pro-growth policies such as government-led infrastructure investments and measures to stabilize the property sector will also help the economy pick up steam this year, Li said.

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