Chinese economy to see rapid recovery in 2023 despite challenges: officials
Published: Dec 25, 2022 08:09 PM
Visitors take pictures and enjoy food at a market in Nanjing Pedestrian Road, a main shopping area in Shanghai on December 15, 2022. Photo: Xinhua

Visitors take pictures and enjoy food at a market in Nanjing Pedestrian Road, a main shopping area in Shanghai on December 15, 2022. Photo: Xinhua

Though challenges and uncertainties remain, the Chinese economy is expected to see marked growth in 2023 and a rapid recovery is around the corner, Chinese officials and economists said at a forum over the weekend.

With the implementation of the pro-growth policies set by the Central Economic Work Conference, China will usher in a new wave of development of the real economy, in particular digital economy and green economy next year, which will help boost the economic recovery, Ning Jizhe, former deputy director of the National Development and Reform Commission, said at the China Wealth Management 50 Forum on Sunday.

Ning noted that there are broad prospects for the country to vigorously develop the green economy, including new power generating capacity with clean and renewable energy sources, improving the clean and efficient use of coal, boosting the growth of the new-energy vehicle sector, and increasing the issuance of green bonds and measures.

The economy has passed its most challenging period, and the economy is expected to show an overall improvement in 2023 despite an uncertain environment, Yin Yanlin, deputy director of the General Office of the Central Financial and Economic Affairs Commission, said at the forum.

"2022 was a special and extremely difficult year for China's economy, but the country withstood the test and the challenge of unimaginable scale," Yin said.

Yin noted three factors that had a negative impact on China's economy, including the pandemic, a volatile international environment and some Western countries' escalating containment of China's development, as well as the US' financial tightening.

While there is a gap between the country's GDP growth rate and the annual target set at the beginning of 2022, structural indexes including development quality and scientific and technological innovation have shown solid gains, Yin said. 

He said that the labor market and the prices of goods have maintained fundamental stability, and grain and energy security as well as people's livelihoods were effectively protected.

"We should have full confidence in the overall improvement of China's economy in 2023," Yin said. Along with the optimization of China's anti-COVID measures, the mobility of people will become smoother and the recovery of all aspects of economic and social activities will pick up, which will work jointly to propel economic vitality, he said.

Lou Jiwei, former finance minister, suggested at the forum that a relatively high economic growth rate target - higher than 5 percent - should be set for next year; and in order to boost the recovery, proactive fiscal policies need to see higher effectiveness.

Cutting fees and taxes for certain businesses should still be significant measures. In order to ease the burden on businesses, China's annual budgeted deficit rate could be raised to over 3 percent of GDP next year, Lou said.

China's sound economic fundamentals remain unchanged, with strong resilience, enormous potential and great vitality, experts said.

"The Chinese people's strong will for a better life means great momentum and vitality will be released which will boost the development of the economy. China's advance toward modernization will not be halted," Yin said, noting that the dawn for a fast economic recovery will emerge.