The Chinese economy track to recover steadily
Experts and economists are optimistic about China’s prospects, anticipating stronger policy support and domestic demand to support the world’s second-largest economy’s steady recovery, even though the outlook for global growth in 2023 is clouded by uncertainty.
The optimized epidemic response in China is anticipated to support growth all year long, despite the possibility that it will temporarily disrupt economic activity.
Han anticipates that the recovery will accelerate in the first half of this year, particularly in the second quarter, as more factories ramp up production and businesses reopen.
Warming domestic demand will drive the Chinese economy’s recovery this year, with the country’s full-year GDP growth expected to be around 5.5 percent.
Experts anticipate that China will renew its policy support for growth, complementing the existing policy package and driving a steady economic recovery.
According to Zhao Chenxin, deputy director of the National Development and Reform Commission, China will strengthen policy coordination throughout the year, with steps taken to fully unleash the effects of policies implemented in the second half of 2022.
The country will tighten fiscal policy to improve its effectiveness and make prudent monetary policy more targeted and effective, potentially raising its deficit-to-GDP ratio to 3% and special bond issuance to 3.8 trillion yuan (about 549.68 billion US dollars) in 2023.
As China gradually transitions from the traditional investment-led growth mode to one that includes both investment and consumption, domestic demand is anticipated to play a larger role in generating economic growth.
The recovery of the economy is expected to boost consumer spending this year, according to economists in particular.
Wen predicts that in 2023, China’s consumption will increase by 9% annually as a result of rising incomes, policies that encourage consumption, and a low base year.
The Chasing International Economic Institute predicts that in 2023, China’s per capita consumption spending will increase by 8 to 12 percent annually while total retail sales of consumer goods will increase by 7 to 11 percent.