The durability and potentials of China's economy have led analysts to the conclusion that in 2023, China will continue to be a reliable and major driver behind the expansion of the global economy.
This year, despite the presence of a number of obstacles, China was able to keep the overall stability of its economy intact. This was accomplished by successfully coordinating COVID-19 policy with economic and social development, as well as by introducing a number of stimulus packages to support enterprises, stabilize consumer prices, and boost the confidence of global investors.
The annual Central Economic Work Conference, which took place in Beijing from Thursday to Friday, made the observation that it is anticipated that China's economic performance in 2023 will demonstrate an overall recovery and improvement.
The Central Economic Work Conference, which was responsible for developing the fiscal and monetary, industrial, science and technology, and social policies for 2023, made maintaining economic stability the top priority of its deliberations and demanded that steady progress be made while maintaining economic stability for the coming year.
According to a meeting that was held earlier this month by the Political Bureau of the Communist Party of China Central Committee, China has committed to further expanding domestic demand and to giving full play to the fundamental role of consumption as well as the key role of investment in 2023. In addition, China has pledged to give full play to the fundamental role of consumption and the key role of investment.
The Chinese economy is expected to have a solid performance in 2023, according to analysts, because Beijing has a large number of policy levers at its disposal to ensure a resilient recovery.
According to the Managing Director of the International Monetary Fund Kristalina Georgtaeva, China possesses the fiscal space necessary to stimulate its economy and combat the downward pressure.
"We see three to four quarters of strong growth, starting either in 2Q or 3Q of next year," analysts at the multinational financial services company Societe Generale wrote in a forecast that the Chinese economy could achieve around 5 percent growth in 2023. This forecast was based on the assumption that the Chinese economy would continue to expand at its current rate.
Morgan Stanley also anticipated that China would mount a recovery from the middle of the year 2023, achieving a full-year growth of 5 percent. This prediction was included in a recent research.
The experts' confidence is based on a variety of good signs and indicators, which have been accumulating recently.
According to a research note that was published by UBS analysts Christopher Swann and Vincent Heaney on Monday, it was said that "Chinese stocks have increased by 37 percent since the beginning of November on several encouraging reopening signals from Beijing."
During this time, a large number of global companies are increasing the scope of their operations and investments in China. According to official figures, the amount of foreign direct investment in the Chinese mainland that was put to real use in the first 10 months of the year increased by 17.4 percent year on year to 168.34 billion United States dollars.
The German automobile manufacturer Volkswagen is one of the heavyweight investors. In the second half of 2022 alone, Volkswagen has indicated that it will invest up to three billion dollars in two new R&D-focused joint ventures in China.
In a report that was released on Tuesday, Rhodium Group stated that "the largest corporations that have poured billions of dollars into local assets are staying there and following through on their investment plans." This statement demonstrates the trust that investors have in China's market outlook.
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