China signals more stimulus as economic slowdown worsens

Alanna Dominguez
16 Jan 2019, 10:57 GMT+10

China will strive to have a strong start on the economy in the first quarter as it signals authorities to come up with more stimulus measures to counter slowing growth in the economy
China, which is the world's second largest economy, began to slow down in 2018
According to the NDRC vice chairman Liam Weiliang, the government's top priority is to stabilize employment

BEIJING, China- China will strive to have a strong start to the economy in the first quarter as it tells authorities to come up with more stimulus measures to counter slowing growth in the economy, said the state planner on Tuesday.

According to Premier Li Keqiang, China attained its key 2018 targets and seeks to have a good start in the first quarter in order to establish conditions that will enable the country to meet this year's goals.

In a statement, the National Development and Reform Commission (NDRC) said that China will strengthen the monitoring of its economic situation as well as enhance its reserve of economic policies.

China, which is the world's second largest economy, began to slow down in 2018. This is after Chinese authorities came up with long-term structural adjustments to shift to a more gradual but sustainable growth course. A slowdown has also been influenced by the trade war between the U.S and China.

This trade war has mounted pressure on China's economy and even caused the most unexpected fall in exports in December. In order to double gross domestic product and incomes in 2020, a 6.2% annual growth is needed this year and in 2020.

According to the NDRC vice chairman Liam Weiliang, the government's top priority is to stabilize employment. He also added that China will speed up local government bond issuance and investment projects. He, however, said they will not resort to 'flood stimulus.'