BEIJING (Reuters – China maintains a “relatively ample” amount of policy tools that can be used to manage the year ahead. These measures are expected to be in place in time to stabilize economic growth, according to China’s State Planner on Tuesday.

Yuan Da (spokesman for National Development and Reform Commission) stated that the government will soon roll out policies to improve domestic demand and to study targeted ways to increase industrial production.

This was the second-largest country in the world. It experienced its highest growth rate in a decade in 2021 thanks to strong exports. But momentum is slowing due to weakening demand and repeated COVID-19 infections.

Yuan declared that they will keep up the monitoring of the economy’s health and outlook, analyze the reserve policy tools, and develop timely relevant policies based upon the needs from economic operations in order to promote stable, healthy, and sustainable economic growth.

China’s central banks unexpectedly reduced on Monday the cost of borrowing medium-term loans from China. Market analysts are expecting further policy ease this year in order to mitigate a slowdown.

Yuan recognized that 2022 will be a difficult year for the economy. This includes weak consumer, limited growth in investment and uncertainty in foreign trade. It has also led to fluctuating market expectations and decreased corporate confidence.

In 2021, the regulator approved 90 fixed asset investment projects worth totalling 775.4 billion Yuan (122.20 Billion).

($1 = 6.3454 )