China to ensure steady economic growth in Q1, says prime minister

China to ensure steady economic growth in Q1, says prime minister

China will ensure steady economic growth in the first quarter of 2022, Chinese Prime Minister Li Keqiang said on state radio on Wednesday (5).

The government will implement further tax and tax cuts for businesses and provide targeted support to sectors affected by Covid-19, such as services, Li said.

China will expand existing tax incentives and increase deductions for research and development expenses when companies calculate their income tax, he added.

Facing renewed downward pressure on the economy, China is looking to stabilize key areas such as employment, finance, trade and investment, Li said.

Zhang Ming, senior economist at the Chinese Academy of Social Sciences, a leading government think tank, said in a report that China’s economy could grow 5.3% to 5.5% in 2022.

The government will adopt “more expansionary” policies this year to avoid a further slowdown in economic growth compared to last year’s fourth quarter, Zhang said.

Some analysts estimate that China’s Gross Domestic Product (GDP) growth in the fourth quarter has fallen below 4% from the 4.9% pace in the previous quarter, although growth in 2021 could still be around 8%, level above the official target of more than 6%.

Reference: CNN Brasil