Dr. Le Xia is Chief Economist for Asia at BBVA Research. He joined BBVA in 2010.He also serves as a research fellow in International Monetary Institute at Renmin University of China. Prior to joining BBVA Research, Dr. Xia worked for the Treasury Department of Bank of China (Hong Kong). The research fields of Dr. Xia include macroeconomics in Asia economies, financial development in the Asian region and the economic integration between China and other emerging markets.He obtained his PhD from the University of Hong Kong and has a master degree from Renmin University of China.
Chinese authorities not only prioritized economic growth in 2022 but also promulgated a series of stimulus measures in monetary and fiscal perspectives with actions.
A series of global and domestic macro fundamentals drove recent sharp RMB depreciation. We do not think it will lead to systematic financial instability risk as it is synchronized with depreciation of other currencies amid FED tightening measures. The PBoC has counter-cyclical tools to maintain the RMB exchange rate stable.
China’s domestic uncertainties particularly the Covid-19 situation dominate external uncertainties as the main risks for growth. Two Sessions sets growth target at 5.5% and promulgated the stimulus package for 2022 to support growth which is unsynchronized with main central banks’ tightening measures.