China is capable of achieving its main economic goals this year and will prioritize stabilizing growth in 2022 in the face of renewed downward pressures, Prime Minister Li Keqiang said on Monday, according to the official Xinhua news agency.

China will take effective measures to address the difficulties, Li told World Bank president David Malpass in a video conference.

“China is expected to take advantage of a large number of macro and micro tools to stabilize economic growth in 2022,” Xinhua noted.

Against the backdrop of mounting downward pressures, the Central Economic Work Conference reiterated that next year’s work should prioritize stability while pursuing progress, said Gao Ruidong, an economist at Everbright Securities.

Fiscal policies will have a bigger role to play in 2022, and the main policies will focus on public consumption and weak links in the economy, according to Zhong Zhengsheng, an economist at Pingan Securities.

New tax and fee reduction policies are expected to be introduced to lower corporate costs and boost business confidence, while special-purpose bond issues are likely to be promoted, Gao said in a statement last week.

According to the Organization for Economic Cooperation and Development, China will achieve economic growth of 8.1% this year, but will slow down to 5.1% in 2022.

“The rapid recovery, driven by strong exports thanks to the reopening of foreign economies and robust investment, has stalled in the second half of the year,” the agency explained.

Energy sector

Li Keqiang said the country’s energy system infrastructure, from production to storage and distribution, will be strengthened in order to ensure the supply of coal, power and natural gas.

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For its part, the National Development and Reform Commission said it would promote the construction of large-scale solar and wind power plants in desert areas, as well as the improvement of key industries and companies whose energy efficiency is below the reference level.

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