Country expected to achieve 2024 forecast

With China's proactive policy taking effect, the Asian Development Bank expects the growth of the Chinese economy this year will be within the target range of about 5 percent, which was announced by the government early this year.

Safdar Parvez, country director for China at the bank, said on Thursday that there was a positive outlook for the world's second-largest economy in both the short term and long term.

"The (Chinese) economy remains steady, growing at 4.8 percent in the first nine months of this year. This has been supported by strong export performance and policy measures to boost demand and improve the property sector situation," he said.

"Recent announcements on fiscal and monetary policy actions show that the authorities acknowledge the importance of addressing current challenges by deploying a range of stimulus measures."

He appreciated the country's recently released debt swap program, which he said could help provide relief to local governments and support economic stability, against the background that the drop in land sale revenue and limited fiscal space for local governments are hampering local spending and new infrastructure investment.

However, Parvez noted some key downside risks for the Chinese economy in the short term, including a prolonged correction in the property market, subdued consumption and rising trade tensions.

To enhance China's potential growth in the long run, he said there is a recognized need to optimize the allocation of capital, particularly directing credit toward more productive sectors such as the private sector, with a special focus on fostering innovative small and micro businesses, as well as large enterprises.

Parvez also highlighted the significant transformation in China's economic growth model and the deepened partnership between the country and the development bank.

China's pursuit of high-quality development, with its ambitious dual carbon goals and leading role in renewable energy, is essential for high-quality development. Parvez said more efforts are needed in ecological development and environmental protection, and that the bank stands ready to assist in this journey.

"ADB and China have collaborated for nearly four decades, witnessing China's shift from a high growth model to one based on high quality and sustainability," he said. "The partnership has evolved from a simple borrower-lender relationship to a multifaceted collaboration aimed at enhancing the quality of growth and improving development prospects in the Asia and Pacific region."

Ouyang Shijia contributed to this story.