China’s Booming Economy Experts Predict Over 6% Growth in 2023
Numerous international organizations and investment banks have heightened their predictions for China’s economic expansion in 2023 after witnessing the impressive revival of the country’s consumption sector during the Spring Festival period.
Certain economists, with a positive perspective, forecast that China’s GDP could potentially experience a robust 6% year-on-year increase this year, empowered by the nation’s efficient epidemic response and effective pro-growth strategies, providing confidence and drive to the worldwide economic recovery.
The IMF stated in its recent World Economic Outlook that the Chinese economy is estimated to grow by 5.2% year-on-year in 2023, a 0.8 percentage point increase from its projection made in October.
Morgan Stanley elevated its outlook for China’s GDP growth in this year to 5.7% from 5.4%, anticipating an earlier and more significant rebound in activity, as per media reports.
Global leading asset management firm, Vanguard, recently raised its forecast for China’s economic growth to 5.3% from 4.5% after observing a robust fourth-quarter performance, as per a press release on the company’s website.
Additionally, Swiss investment bank UBS AG improved its forecast to 4.9% growth, as indicated in a note sent to the Global Times.
International institutions are forecasting a bullish outlook for China’s economy, due to the growing confidence in the country’s economic recovery.
This is reflected in the increased activity during the recent Spring Festival holidays, where there were 2.9 million cross-border trips and 308 million domestic trips, both up from the previous year.
Experts predict China’s economy may grow by 6-6.5% in 2023, with growth expected in emerging sectors such as the photovoltaic industry and new-energy vehicles.
The digital economy and infrastructure are also seen as new growth points, with China’s infrastructure investment expected to perform better than investment in the manufacturing and real estate sectors.
The IMF projects that China’s contribution to global economic growth will reach 25% in 2023 and the stable recovery of the Chinese economy will provide a boost to the Asia-Pacific region and the global economy as a whole.