(Yicai Global) Dec. 14 -- China’s economy will recover further next year, with gross domestic product expected to climb by about 5.1 percent from this year, according to a report jointly released by the Chinese Academy of Social Sciences and the Social Sciences Academic Press China.

The low base number for GDP growth this year will drive it up next year, though China’s economy will be adversely affected by the coronavirus pandemic, said Li Xuesong, head of the Institute of Quantitative and Technical Economics at the Chinese Academy of Social Sciences.

China should set a growth target of more than 5 percent next year and do its best to achieve an even higher rate, according to the report, which is also known as the Blue Book.

The global economy will slow further in 2023, weighing heavier on China’s foreign trade, but the country’s eased Covid-19 policies will boost domestic consumption, Li added.

Next year, China should make greater efforts to implement proactive fiscal policies to hedge the sluggish private sector demand, maintain a moderate deficit by targeting a deficit-to-GDP ratio for the national general public budget of about 3 percent, and make special bonds in areas such as infrastructure construction easier to apply, the report suggested.

The country should also continue with prudent monetary policy to keep total credit in the real economy growing steadily, focus structural monetary policy tools on promoting transition and improving weak links, guide fundraising costs and debt in the real economy lower, and boost the monetary policy response to match high US interest rates, the report added.

The Chinese economy is still recovering from the pandemic and external impacts, Li said, adding that the domestic environment is generally good but has some structural issues. The country should pay attention to structural imbalances in the economic recovery, significant pressure on jobs among key groups, challenges to the security and stability of the industrial and supply chains, and complicated risks in critical areas, he noted.

Editor: Futura Costaglione