China's economy projected to grow at 8% in 2021

Tourists and locals enjoy at the Bund area of Shanghai. [Photo by Yin Liqin/China News Service]

The growth rate of China's gross domestic product is expected to stand at around 8 percent in 2021, showing a trend of "faster first and slower second", according a report on China's 2020 finance released by the Chinese Academy of Social Sciences on Sunday.

The report said the country's inflation pressure will be relatively small, the macro leverage ratio will remain stable with a slight decline. The exchange rate of the RMB against the US dollar will possibly see a two-direct fluctuation pivoting 6.4-6.5.

The report said that during the 14th Five-Year Plan period, the country's economic and financial operation will face many challenges including remarkable rise in macro leverage ratio, financial digitalization and expansive fiscal policies in developed economies.

Household sector debt and debt risk for local governments also need vigilance, said Li Yang, president of the National Institution for Finance and Development.

The report suggested finance should be oriented toward serving real economy. The country should promote a balanced development among finance, real estate and real economy. It should expand financial opening-up while ensuring security and establish a green financial system targeting carbon neutrality.