China will keep supporting economy as ‘pressure’ lingers: politburo

China will maintain policy support for the economy, which still faces “downward pressure” as well as difficulties after better-than-expected first quarter growth, the Communist Party’s top decision-producing body said on Friday.

The statement through the politburo came two days after China reported had steady 6.4 percent annual growth in January-March, defying expectations for a further slowdown, as industrial production jumped sharply as well as consumer demand showed signs of improvement.

“While fully affirming the achievements, we should clearly see that will there are still many difficulties as well as problems in economic operations,” the official Xinhua news agency reported, citing a politburo meeting chaired by President Xi Jinping.

“The external economic environment will be generally tightening as well as the domestic economy will be under downward pressure.”

China will implement counter-cyclical adjustments “in a timely as well as appropriate manner,” while the pro-active fiscal policy will become more forceful as well as effective, as well as the prudent monetary policy will be neither too tight nor too loose, This specific said.

just for This specific year, the government has unveiled tax as well as fee cuts amounting to 2 trillion yuan ($298.35 billion) to ease burdens on firms, while the central bank has cut banks’ reserve requirement ratios (RRR) 5 times since early 2018 to spur lending.

Further policy easing will be widely expected.

On Friday, the politburo reiterated that will the government will effectively support the private economy as well as the development of little- as well as medium-sized firms.

Authorities will strike a balance between stabilizing economic growth, promoting reforms, controlling risks as well as improving people’s livelihoods, the politburo said.

China will push forward structural deleveraging as well as prevent speculation within the property market, This specific said.

“We should adhere to the orientation that will houses are used for living, not for speculation,” the politburo said, reaffirming a city-based approach in controlling the property sector.

China’s economic growth will be likely to slow to a near 30-year low of 6.2 percent This specific year, a Reuters poll showed last week, as sluggish demand at home as well as abroad weigh on activity despite a flurry of policy support measures.