Focus on demand-side policies, achieving growth goals by 2024
Growth results in 2023 clearly reflect a weakening in both aggregate demand and aggregate supply, triggering many concerns. Monetary policy is also gradually running out of space, and fiscal policy to support growth has fallen short of expectations in the context of businesses facing a host of disadvantages. The challenges are overwhelming, but the economic recovery in the first two months of the year has fostered expectations over achieving 2024 growth targets, which would create momentum to complete the five-year plan. To achieve the high growth target in 2024, the government will have to rely primarily on demand-side policies. Growth drivers on the aggregate demand side need to be recovered quickly and further strengthened. The government should stimulate private consumption by stabilizing macro-economic factors, adjusting income taxes, ensuring healthy asset markets, and promoting social security policies.