CHINA’S economy in 2016 still faces relatively large downward pressure and the speed of economic growth may fall further, said a top planning body’s think tank, recommending more monetary policy easing, the Economic Daily reported yesterday.

    The National Development and Reform Commission’s (NDRC) think tank recommended that China’s government continues to cut interest rates and banks’ reserve requirement ratio to bolster flagging growth in the world’s second-largest economy.

    China should also give way to pressure on yuan depreciation, the think tank said, in order to boost exports.

    The government has been struggling to reach its economic growth target of around 7 percent this year, despite a raft of policy easing steps in recent months.

    China’s top leaders have started an annual meeting to map out economic and reform plans for 2016, domestic media reported Friday. The central bank has also been notable for its lack of a response to the U.S. Federal Reserve’s interest rate hike Wednesday.

    The NDRC think tank predicted that investment growth could fall to about 9 percent in 2016. From January to November this year, fixed-asset investment growth has been 10.2 percent year on year.

    Real estate investment may be flat, the report said.

    Consumption growth could face a year of single digit growth in 2016 while exports may grow slightly, said the think tank.

    The think tank recommended expanding China’s fiscal deficit to support major projects and possibly issuing more central and local government bonds.

    The stock market should be stabilized and efforts made to fend off the risk of large-scale capital outflows, the think tank also proposed.

    (SD-Agencies)