Central bank governor sees China’s economy regain momentum, supported by rising credit demand
Published: Oct 15, 2023 12:33 PM Updated: Oct 15, 2023 12:29 PM


The Chinese economy has seen rising positive development with more bright spots emerging and expectations improving, said Pan Gongsheng, governor of People's Bank of China, the central bank, at the International Monetary Fund's annual meeting in Marrakech, Morocco, on Saturday.

Latest indicators including the industrial production and services activity have been accelerating, the fixed asset investment continues to expand, and high-tech industry investment is maintaining rapid growth, Pan said.

Several third-quarter indicators released on Friday showed that the Chinese economy is regaining momentum.

China's foreign trade in September registered month-on-month growth for a second consecutive month, with the trade volume reaching a new monthly high during the year, official data showed Friday, the latest sign that the world's second-largest economy is back on track toward recovery as stimulus takes effect and market confidence returns.

China's consumer price index, the main gauge of inflation, was flat in September on a yearly basis, but rose 0.2 percent compared with previous month as consumption continues to recover. Separately, the producer price index fell 2.5 percent in September from a year earlier, following a 3 percent drop in August. The drop in factory prices was the smallest in seven months.

Moving forward, China could achieve a balance between economic growth and sustainability, provided it focuses on promoting high-quality and sustainable development while ensuring a reasonable rate of growth, Pan said.

Pan noted that China will use more monetary policy tools to expand domestic demand, boost confidence, try to stimulate a positive economic cycle, by continuously providing stronger support to the real economy.

Chinese banks issued 2.31 trillion yuan ($316.31billion) of new loans in September, up sharply from 1.36 trillion in August, data from the People's Bank of China showed on Friday.

Recent data has reflected a continued recovery in China's economy. In the short term, the central bank is likely to implement more targeted measures rather than bigger interest rate cuts, Zhou Maohua, an economist from China Everbright Bank told the Global Times on Sunday.

Policies are expected to focus on supporting small and micro enterprises, private enterprises, and other vulnerable sectors to stimulate overall credit demand. Additionally, improving confidence among residents and businesses, along with a stabilizing real estate market, is expected to shore up credit demand, Zhou noted.