Li Chao, spokesperson of the National Development and Reform Commission (NDRC), gestures at a press conference in Beijing, capital of China, Nov. 19, 2024. [Photo/Xinhua]

China's economy is expected to maintain its recovery momentum in November and December thanks to the effectiveness of the country's policy toolkit, the National Development and Reform Commission (NDRC) said on Tuesday.

The commission, the country's top economic planner, is working with other parties to achieve the full-year growth target, said NDRC spokesperson Li Chao at a press conference.

Multiple economic indicators have shown a rise in market confidence and expectations among business entities since September, with an increase in companies' willingness to invest and produce, Li said.

Data from the National Bureau of Statistics showed that despite challenges at home and abroad, China's GDP grew 4.8 percent year on year in the first three quarters of 2024. This year's annual economic growth target is around 5 percent.

Policies yielding outcomes

China has rolled out an array of measures to boost growth this year, including a program that promotes large-scale equipment upgrades and consumer goods trade-ins, and the issuance of ultra-long special treasury bonds, among others.

The equipment upgrade and consumer trade-in program has helped meet consumption demand, increased support for industrial transformation, and helped consolidate the country's ongoing economic recovery, according to Li.

The trade-in initiatives, which offers consumers subsidies on the replacement of a wide range of products, helped drive a nearly 40 percent surge in combined sales of household appliances and audiovisual equipment in October, compared to the previous year, Li said.

In addition, spending on equipment and tools nationwide increased by 16.1 percent year on year in the first 10 months, contributing more than 60 percent to the total investment growth in the country.

"We will study and propose further policies and measures to increase the intensity and expand the scope of support for the large-scale equipment upgrade and consumer goods trade-in program, and update the public in due course," Li told the press conference.

During the conference, Li said positive development factors in the private economy continued to increase, and private investment in the real economy maintained sound growth momentum.

Li pledged greater efforts to support private enterprises' participation in the construction of major national projects, improve the financing support policies and systems for private enterprises, and create a social atmosphere that cares about and supports the development of the private economy.

"We will strive to make private enterprises feel a sense of gain, and constantly promote the development and growth of the private economy," said Li.

Vast potential to tap

Looking ahead to 2025, Li said China's economy will maintain vast favorable conditions and supportive factors, with enormous market potential yet to be unleashed.

For instance, the overall urbanization rate still has significant room for improvement, which will drive consumer demand, Li said.

Additionally, new business models related to the green and digital sectors, as well as elderly and childcare services, will continue to generate robust demand, said the spokesperson.

With adequate policy space, China has steadily enhanced its policy toolkit, including targeted regulation and counter-cyclical adjustments, and improved the consistency of its macroeconomic policies. These efforts will effectively support the steady and healthy development of the economy, the spokesperson said.

"The underlying trend of economic recovery and long-term growth remains unchanged, and we have full confidence in this," Li said.

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