Page 5 - REPORT ON THE IMPLEMENTATION OF THE 2022 PLAN FOR NATIONAL ECONOMIC AND SOCIAL EVELOPMENT AND ON THE 2023 DRAFT PLAN FOR NATIONAL ECONOMIC AND SOCIAL EVELOPMENT

2. We implemented prudent and effective macro policies and maintained overall
economic and social stability.

In response to the impacts of repeated resurgence and continued spread of the
coronavirus, the outbreak of the Ukraine crisis, and other factors that went beyond
our anticipation, we decisively took stronger steps in implementing our macro
policies. We promoted sustained economic recovery, with a focus on ensuring
stable growth, employment, and prices. China’s gross domestic product (GDP)

reached 121 trillion yuan in 2022, representing annual growth of 3%. A total of
12.06 million urban jobs were created nationwide, and the year-end surveyed
urban unemployment rate was 5.5%. Overall stability was maintained in prices,
with the monthly year-on-year rise in the consumer price index (CPI) kept under 3%

and yearly CPI growth at 2%, which stood in stark contrast to the 40-plus-year
record high in global inflation. China had a favorable balance of international
payments, and its foreign reserves totaled 3.1277 trillion US dollars at the end of
2022.
1) More new approaches were adopted to improve macro regulation.
We introduced a package of policies and follow-up measures in a timely

manner to keep economic performance stable, and we strengthened supervision
and guidance over local implementation of these policies, thus effectively
responding to impacts that went beyond our anticipation.
Our proactive fiscal policy became more effective, with greater emphasis

placed on keeping it targeted and sustainable. The government deficit was set at
3.37 trillion yuan, which ensured fiscal spending intensity and maintained the scale
necessary to support economic recovery. Local governments issued an additional
3.65 trillion yuan in special-purpose bonds, special-purpose bonds from previous
years’ unused inventory worth 502.9 billion yuan were issued and put to good use

in accordance with the law, and the issuance and use of special-purpose bonds
were accelerated, all of which helped give full play to their positive role in
sustaining investment and growth. We put the mechanism for direct allocation of
budgetary funds into full use and made government spending more targeted and

effective. We made concrete efforts to protect the three priorities of the people’s
basic wellbeing, payment of salaries, and normal government functioning at the
local level. Transfer payments from the central to local governments totaled 9.71
trillion yuan, an increase of 17.1%, which effectively relieved pressure on city and
county governments from decreased revenues and increased expenditures.

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