China’s Economic Resilience Highlighted by UN Economist
According to a United Nations economist, China’s economy is rebounding steadily from the pandemic and continues to exhibit strength, fostering confidence in its future economic outlook. The UN has recently published an update to its World Economic Situation and Prospects 2023 report, raising China’s projected growth rate for this year to 5.3 percent from the previous forecast of 4.8 percent made in January.
One contributing factor to the upward revision of China’s growth is the strong rebound in retail sales, reflecting solid household demand. Additionally, the Chinese housing market has largely stabilized, setting it apart from many other major economies. China also possesses significant fiscal and monetary flexibility to support economic activities, which further strengthens its economic standing compared to other nations.
While acknowledging the potential downside risks, such as weak external demand if the United States and Europe enter recession or prolonged slow growth, the economist emphasized that China is well-positioned to handle such challenges. China’s fiscal and monetary policies can provide support and stimulate economic activities when faced with downward pressure. As a result, the Chinese economy is considered to be on a very strong footing, bolstering confidence in its near-term economic prospects.
The positive effects of China’s economic recovery extend beyond its borders, benefiting developing nations through increased export demand and countries reliant on Chinese tourism. Developed economies also stand to gain, as China serves as a major importer of technology. The economist highlighted that with China’s recovery, international trade is likely to recover at a faster pace.
China’s role as the world’s second-largest economy and its commitment to multilateralism contribute to its constructive influence on the global economy. The economist expressed confidence that China will be able to maintain its growth trajectory if the current policy mix is sustained and external conditions do not pose significant obstacles.
Overall, the UN economist’s assessment underscores the strength and resilience of China’s economy, providing positive outlooks for both domestic and international economic landscapes.