China will continue to expand domestic demand and deepen the supply-side structural reform

Since the beginning of this year, monetary policy has adhered to a steady orientation, achieved good regulation and control effects, and strongly supported economic development recovery. 

Monetary and credit grew reasonably. In the first quarter, RMB loans increased by 10.6 trillion yuan ($1.52 trillion), an increase of 2.27 trillion yuan on a year-on-year basis; at the end of March, the stock of RMB loans, broad money (M2) and social financing scale increased by 11.8 percent, 12.7 percent and 10 percent respectively. 

The credit structure continued to be optimized. At the end of March, the balance of inclusive small and micro loans, as well as manufacturing medium and long-term loans increased by 26 percent and 41.2 percent respectively, according to the report on the implementation of China's monetary policy in the first quarter of 2023, released by People's Bank of China on Monday.

China's economy and society have resumed normal operation in an all-round way, with the triple pressures of demand contraction, supply shock and expected weakening having all been alleviated. Economic growth is better than expected, and market demand has gradually recovered. Long-term development also has the advantages of huge market scale, a complete industrial system and abundant human resources, the statement added.

Going forward, China will combine expanding domestic demand with deepening the supply-side structural reforms, giving full play to the effectiveness of monetary and credit policies, doing its best to stabilize growth, employment and prices, and taking advantage of the situation to promote the effective improvement of quality and reasonable growth of the economy, said the statement.

(Cover image via CFP)

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