Category: Economy

Speaking at a press conference held on 29th March in Beijing, under the theme “Promoting High-Quality Development,” Mr. Wang Weizhong, the Governor of Guangdong, shed light on the province’s strategic advancements and future prospects.

As he explained, Guangdong’s journey towards high-quality development is deeply rooted in the directives of CPC’s General Secretary and President of China, Xi Jinping, emphasizing the province’s pioneering role in reform and development.

The guiding principle, as outlined by the General Secretary, is for Guangdong to lead in constructing a new development pattern, focusing on high-quality development as its core task.

This vision was encapsulated in the Guangdong-Hong Kong-Macao Greater Bay Area’s development, aiming to serve as a strategic support point and a demonstration area for high-quality development and Chinese-style modernization.

Governor Wang Weizhong detailed the “1310” strategic deployment, aiming to anchor Guangdong’s leadership role in development through reform, opening up, and innovation, while making breakthroughs in ten key areas. This strategic approach has been pivotal in seizing opportunities brought forth by technological revolutions and industrial transformations, setting a blueprint for “recreating a new Guangdong.”

Guangdong’s economic milestones are impressive, with a GDP reaching 13.57 trillion yuan (over 2.5 trillion US$), maintaining its position as China’s leading economic province for 35 consecutive years. This economic prowess is coupled with significant efforts in expanding investment, promoting consumption, and stabilizing foreign trade to achieve a targeted economic growth of 5% in 2024.

The construction of the Guangdong-Hong Kong-Macao Greater Bay Area marks a significant stride towards deepening reforms and opening up, creating a synergistic effect across the region. This initiative is bolstered by major infrastructural developments and the collaborative efforts with Hong Kong and Macao to position the Bay Area as a world-class economic hub.

Innovation and the cultivation of new productive forces are at the heart of Guangdong’s strategy for high-quality development. With leading positions in industrial enterprises, high-tech firms, and intellectual property rights, Guangdong is steadfast in its commitment to the real economy and manufacturing, aiming to develop new trillion-level industrial clusters.

Moreover, the province’s dedication to ecological sustainability and the well-being of its residents underscores the holistic approach to development. Efforts in ecological construction and improving people’s livelihoods through the “Ten Major Projects for People’s Livelihood” exemplify the province’s commitment to a green and equitable development path.

The province’s journey is a blueprint for others, showcasing the possibilities of sustainable development in the 21st century. With its eyes set on the future, Guangdong welcomes the world to witness its transformation, inviting global audiences to explore the charm and vibrancy of a region at the forefront of China’s march towards modernization.

IMF staff and the Rwandan authorities on Friday, March 22, 2024, announced that they had reached staff-level agreement on policies needed to complete the third reviews of Rwanda’s Policy Coordination Instrument (PCI) and program under the Resilience and Sustainability Facility (RSF), and the first review of the Stand-by Credit Facility (SCF) arrangement.

The declaration followed the conclusion of a two-week mission led by Ruben Atoyan, who visited Kigali from 11–22 March, 2024, to discuss the authorities’ policy priorities and progress on reforms regarding the reviews.

The conclusion of the mission paves the way for the consideration of the report by the IMF Executive Board in May this year.

Upon completion of the review by the Board, Rwanda would have access to SDR 57.5 million (equivalent to about US$ 76.6 million or Rwf99 billion) under the RSF and SDR 66.75 million (equivalent to about US$ 88.9 million or Rwf115 billion) under the SCF.

At the conclusion of the mission, Mr Atoyan praised Rwanda’s economic gains and resilience, notwithstanding the challenging external environment.

“The 2023 GDP growth continued to be robust at 8.2 percent year-on-year, on the back of strong performance in services and construction, as well as recovery in food crop production in the second half of the year. Inflation decelerated sharply in recent months. Headline inflation was 4.9 percent in February 2024, down from the peak of 21.7 percent in November 2022, owing to appropriately tight monetary policy stance and favorable developments in food prices as agricultural production rebounded at the end of last year,” Mr Atoyan stated.

“The current account deficit widened due to strong food and capital goods imports, along with lower-than-expected coffee exports. The Rwandan franc depreciated by 18 percent against the US dollar in 2023, a necessary step towards facilitating the much-needed external adjustment.
International reserves stood at 4.4 months of prospective imports at end-2023, providing a helpful buffer against external shocks.”

He, however, warned of potential risks and shocks which could adversely affect the country’s economic outlook.

“Deepening of geopolitical fragmentation, another spike in global energy and food prices, or slowdown in trading partners’ growth would weigh on the outlook. Longer-than-expected tight global financial conditions could adversely affect the availability of external financing. Also, already committed grants under the UK Migration and Economic Development Partnership continue to face legal uncertainties and could result in some budget pressures and lower FX inflows if they do not materialize,” he warned.

The IMF official called for deliberate measures to cushion the effects of the 2023 May floods, while also supporting the credible and balanced fiscal consolidation over the medium term.

He also recommended adoption of a comprehensive tax reforms that leverage synergies between tax policy and tax compliance to help create fiscal space for the country’s much-needed developmental spending.

“Expenditure rationalization will need to focus on enhancing the efficiency of public investment, better targeting of subsidies, and digital delivery of public services. The medium-term fiscal framework should be improved by further strengthening fiscal risk management and enhancing the transparency of fiscal accounts,” he added.

Notably, RSF provides affordable long-term financing to countries undertaking reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness, while PCI is a non-financing instrument open to all IMF member countries.

On the other hand, SCF provides financial assistance to low-income countries (LICs) with short-term balance of payments needs.

This industrial park transcends mere manufacturing and innovation spaces, embodying a dynamic emblem of international collaboration, technological progress, and the mutual economic growth of China and Germany within the broader narrative of China’s economic reforms and global engagement.

The inception of the Beijing China-Germany Industrial Park was driven by the aspiration to not only fortify the economic bonds between China and Germany but also to spotlight innovation, sustainability, and shared prosperity. It aims to meld Germany’s technological excellence with China’s manufacturing strength, serving as a vibrant hub for both.

Strategically located within China’s expansive economic terrain, the park enjoys prime access to both local and global markets—a deliberate decision mirroring the foresight of its initiators and the Chinese government’s ambition to establish a nationwide network of such parks to accelerate the country’s economic globalization and integration.

The partnership within the park epitomizes a significant shift in China’s economic approach, transitioning from a mainly inward focus to a strategy embracing globalization. It not only attracts direct investment from Germany but also facilitates technology exchange, skill enhancement, and innovation, significantly benefiting the local and wider economy.

Since its establishment in 2021, the Beijing China-Germany Industrial Park has achieved remarkable milestones, with an annual industrial output reaching 35 billion yuan (around US$5 billion), demonstrating the substantial benefits of international cooperation.

As of November 2023, officials indicated that over 100 German companies had established operations within the park.

The park is setting its sights on expanding its German business presence to more than 150 companies, including over 30 leading niche enterprises, by the end of 2025, with a goal to elevate the annual industrial output to exceed 50 billion yuan.

Housing German giants like Mercedes-Benz, BMW, Ameco, Allianz, ottobock, starmix, ROPA and BOSCH among others, the park is situated in the Shunyi District, heralding it as the foremost national-level German cooperation park within the Beijing German-China Economic and Technological Cooperation Demonstration Zone.

This park is at the forefront of facilitating German exchange activities, constructing a national-level German cooperation platform, and linking resources for German national cooperation.

It collaborates with local governments, industrial associations, universities, research institutes, and companies from both nations to carve new avenues for Sino-German economic and technological partnership.

Beijing, uniquely positioned with policies like the ‘Integrated National Demonstration Zone for Opening Up the Services Sector’ and the Pilot Free Trade Zone, leverages its openness to global businesses.

Ranked among the world’s most livable cities, Beijing offers a fertile environment for international enterprises, buoyed by an integration of premium resources, a conducive business climate, and abundant opportunities.

The city hosts over 45,000 foreign-invested enterprises from more than 160 countries and regions, along with 35,000 permanent foreign country offices, over 4,000 regional headquarters, Research and Development (R&D) centers, and 55 Fortune Global 500 company headquarters, cementing its status as a global economic and innovation hub.

This projection was disclosed by Chinese Premier Li Qiang during the presentation of a government work report at the inaugural session of the second phase of the 14th National People’s Congress (NPC), which convened at the Great Hall of the People on Tuesday morning.

Nearly 3,000 delegates from across the nation gathered in Beijing for the week-long assembly.

China’s Gross Domestic Product (GDP) surged by 5.2% year-on-year in 2023, surpassing the annual target of about 5 percent, reaching a record of 126.06 trillion yuan (approximately 17.71 trillion US dollars) last year.

With a population of 1.4 billion, the country maintained an average surveyed unemployment rate of 5.2 percent in 2023, down 0.4 percentage points from 2022.

During the presentation of this report, Premier Li highlighted the nation’s advancements across various developmental spheres, emphasizing a seamless transition in epidemic management post a decisive victory in the battle against Covid-19.

He underscored the accomplishment of main developmental goals and tasks in 2023, citing steady progress in the pursuit of high-quality development, sustained social stability, and significant strides towards building a comprehensively modern socialist state.

Industries witnessed accelerated transformation, with strategic emerging sectors experiencing robust growth, laying the groundwork for future industry development. Advanced manufacturing integrated further with modern services, resulting in notable innovations across major sectors.

Premier Li also noted substantial progress in establishing a network of national laboratories and achieving breakthroughs in core technologies across key domains.

Reflecting on the challenges faced in 2023, Li acknowledged the economy’s undulating growth trajectory amidst various difficulties. Nevertheless, he affirmed the nation’s successful attainment of developmental targets, underlining a deeper comprehension of economic principles in the new era and the acquisition of valuable experience in overcoming obstacles.

He attributed these achievements to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the steadfast leadership of the Party Central Committee, led by Comrade Xi Jinping.

Looking ahead to 2024, Premier Li outlined key targets, including approximately 5 percent GDP growth, the creation of over 12 million new urban jobs, a surveyed urban unemployment rate of around 5.5 percent, a CPI increase of about 3 percent, and equitable growth in personal income.

Other objectives encompassed maintaining balance in the balance of payments, achieving a grain output of over 650 million metric tons, reducing energy consumption per unit of GDP by around 2.5 percent, and continued environmental enhancements.

Li emphasized that these targets were formulated considering domestic and international dynamics, feasibility, and the imperative of bolstering employment and incomes while mitigating risks.

However, he cautioned that attaining this year’s targets would pose challenges, stressing the necessity for sustained policy focus, enhanced efforts, and unified action.

Speaking at a press conference following the opening session, Mr. Huang Shouhong, head of the government work report drafting team and Director of the State Council Research Office, affirmed that the report comprehensively reflects public concerns.

He disclosed extensive consultations with relevant stakeholders to assess the applicability of recommendations.

Regarding the 5 percent GDP growth target, Huang emphasized considerations of local context and feasibility.

Meanwhile, the Chinese People’s Political Consultative Conference (CPPCC) National Committee convened its annual session on Monday, with over 2,000 national political advisors gathering at the Great Hall of the People. Party and state leaders reviewed and endorsed the session’s agenda during the opening meeting.

{{Photos: Théophile Niyitegeka/ Beijing, China}}

According to BNR, the decision reached during the Monetary Policy Committee (MPC) meeting aligns with the inflation projection and the risks identified and with the aim of achieving lasting inflation stability in the upcoming quarters.

The Central Bank has disclosed that inflation is projected to remain within the band of 2 to 8 percent, averaging close to 5 percent.

However, it disclosed that several potential risks could affect this outlook , including geopolitical tensions such as the ongoing wars in Ukraine and in the Middle East, disruptions in the Red Sea that may influence international commodity prices, and weather-related challenges that could affect future agriculture sector performance.

This budget revision is based on the good execution of the budget during the first half of the fiscal year, which stood at 61% at end December 2023 and allocation of additional resources to key priorities, such as Agriculture, infrastructure and ICT.

“Despite persistent challenges stemming from the effects of COVID-19, global supply chain disruptions, an inflationary environment, and the impact of climate shocks, our economy continues to display strong signs of recovery.

With a 7.6% growth over the first three quarters of 2023, surpassing projections, this budget revision reflects our successes and the effectiveness of the economic recovery plan in sustaining businesses, attracting new investments, generating employment, and ensuring robust social protection for vulnerable citizens,” stated Minister Ndagijimana.

{{Key changes in the 2023-2024 revised budget}}

Resources are expected to increase by 1.7% from Rwf5,030 billion to 5,115.6 billion, driven mainly by increase in external grants and loans.

Meanwhile, government spending is expected to increase by 1.7%, rising from Rwf 5,030.0 billion to Rwf5,115.6 billion. The revision in spending reflects changes in recurrent spending, capital expenditure, and net lending outlays.