|People walk past an office and commercial complex in Beijing's Central Business District (CBD), China, on Mar 15, 2021. (File photo by=Reuters/Tingshu Wang)|
[Asia News = Reporter Reakkana] BEIJING: China will be able to achieve economic growth of around 5.5 percent in 2022, Zhu Guangyao, an adviser to China's cabinet, said on Friday (Jan 21), in a rosier prediction than market expectations, Reuters reported. The Chinese economy, which cooled over the course of last year, faces multiple headwinds in 2022, including persistent property weakness and a fresh challenge from the local spread of the highly contagious Omicron variant of the coronavirus.
The comments by Zhu, a former vice finance minister, are more optimistic than those from private economists. A Reuters poll of analysts published on Jan 13 forecast China’s economy would grow 5.2 percent in 2022. The government will unveil a growth target for 2022 at the opening of the annual parliament meeting in early March.
Li Yang, former vice president of the Chinese Academy of Social Sciences, a top government think tank, said China has policy space to support the economy. China was restrained on monetary policy and fiscal policy in 2021, leaving some space for this year, Li said. China's central bank cut its benchmark lending rates on Thursday to prop up the slowing economy after data earlier in the week pointed to a darkening outlook for the troubled property sector.