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‘New norm’ set for the economy

Updated: Dec 6,2014 10:46 AM

China must adjust its economy to a new norm and keep economic growth within a reasonable range, the Communist Party of China Politburo said on Dec 5, indicating that the growth target for next year could be lowered.

Assessing the country’s economic situation, the CPC Politburo said China has entered a new norm, with good resilience, huge potential and plenty of room for the government to move.

A statement issued after the meeting said that China will continue to combine “stabilizing growth” and “pushing reform”, and adopt an active fiscal policy and prudent monetary policy.

The meeting, held ahead of the annual Central Economic Work Conference, provided an insight into the top leadership’s thinking on next year’s economic agenda.

Analysts said the emphasis on a “new norm” suggests the top leadership will accept a lower GDP growth target next year, while placing more emphasis on structural reform.

The GDP growth target sets the tone for the government’s policy stance. It is also the cornerstone for setting budgetary and other economic policy goals.

The statement after the meeting also said that China will deepen economic reforms next year as it seeks to boost domestic demand, and balance its flow of imports and exports.

The meeting also stressed the importance of implementing some regional strategies, including the Silk Road Economic Belt, 21st Century Maritime Silk Road, coordinated development of the Beijing-Tianjin-Hebei area and the Yangtze River Economic Belt.