China's domestic demand needs to ramp up, says report

China should step up macroeconomic policies to boost domestic demand, including consumption and investment, as the economy faces downward pressure and mounting uncertainties, a yellow book report by a top government think tank said.

China's export sector may face new challenges with foreign demand growth slowing and foreign spending shifting more to services in 2022. A boost in domestic demand boost is key to stabilizing the overall economy next year, the e yellow book report said.

The Yellow Book of World Economy was jointly released by the Institute of World Economics and Politics of the Chinese Academy of Social Sciences and Social Sciences Academic Press in Beijing on Thursday.

To keep economic growth within a reasonable range, policymakers need to make preparations for next year's economic work in advance, with a key focus on ensuring cross-cyclical adjustments, according to the yellow book.

Cross-cyclical measures focus more on long-term and sustainable growth with solutions to tackle root causes while a countercyclical policy focuses more on short term remedies such as using stimulus when the economy slows.

The new yellow book came after the annual Central Economic Work Conference held earlier this month highlighted the importance of stabilityas one of the priorities next year.

In an interview with Xinhua News Agency on Tuesday, Ning Jizhe, deputy head of the National Development and Reform Commission, said combined cross-cyclical and countercyclical policy adjustments will help prevent economic volatility and keep economic growth within a desirable range.

China will also combine fiscal and monetary policies with other policy measures in areas like employment, industry, investment, consumption, environmental protection and regional development, Ning said.

Due to the impact of COVID-19 , the global economy is expected to grow by just 4.5 percent in 2022 following an expected 5.5 percent growth this year, the yellow book said.

The yellow book listed both short-term and long term risks such as how major economies deal with inflation and an aging population, saying the global economy's growth is estimated to slow further to 3 percent to 3.5 percent in the next three to five years.

ouyangshijia@chinadaily.com.cn