Beijing to pursue proactive fiscal policy in 2023
China will focus on stabilising the economy in 2023 and step up policy adjustments to ensure key economic targets are hit, according to a statement issued on Friday following an agenda-setting meeting of leaders and policymakers. The closed-door two-day meeting convened to chart the economy's course in 2023 has been watched closely amid expectations that Beijing would ramp up support measures. The world's second-largest economy faces multiple headwinds due to the Covid pandemic and a weakening global economy. China will implement a proactive fiscal policy and a prudent monetary policy next year, said the statement, issued after the annual Central Economic Work Conference and published by the official Xinhua news agency. Fiscal policy will be stepped up and become more efficient, maintaining the necessary intensity of spending, while monetary policy will be precise and forceful, keeping liquidity reasonably ample, Xinhua said. "Next year, we will prioritise stability and strive for progress," Xinhua cited the statement as saying. The country should better coordinate epidemic prevention and control, and economic and social development, it added. Policymakers have moved to address two of the key drags on the economy, the strict anti-epidemic measures and a property sector downturn, but analysts believe it will be a while before these efforts bear fruit. China's economy grew just 3 percent in the first three quarters of this year and is expected to stay around that rate for the full year, well below the official target of around 5.5 percent.  The nation will take steps to expand domestic demand, prioritise consumption recovery, and achieve major economic targets in 2023, according to the statement. Government advisers told Reuters last month they would recommend the conference adopt growth targets for next year of 4.5-5.5 percent, while a central bank adviser said last month that China should set a target no lower than 5 percent. Although key economic targets were expected to be endorsed at the meeting, they will not be announced publicly until the annual meeting of the National People's Congress in March. Top leaders reiterated that China will stick to its principle of "homes are for living in, not for speculation", and pledged to support strong housing demand, the statement said. (Reuters)