Beijing, China – China’s economic growth in 2023 marked one of its slowest rates in over three decades, as the nation faced headwinds from a severe property crisis, subdued consumption, and global uncertainties. Official figures released by China’s National Bureau of Statistics revealed a GDP expansion of 5.2 percent, reaching 126 trillion yuan ($17.6 trillion), making it the weakest performance since 1990, excluding the pandemic years.
While the growth rate exceeded Beijing’s target and outpaced the three percent recorded in 2022, it reflects a significant slowdown from the six or seven percent levels consistently observed in the 2010s. The initial post-pandemic rebound lost momentum within months, impacted by a lack of confidence among households and businesses, leading to sluggish consumption.
The ongoing tensions with the United States and efforts by Western nations to reduce dependency on China or diversify supply chains have also contributed to the economic challenges. NBS Commissioner Kang Yi acknowledged the “arduous task” of the recovery in 2023, and data indicated a bleak picture as the year concluded.
Between the third and fourth quarters, reflective of real-time economic conditions, growth was only one percent. December witnessed a slowdown in retail sales, a key indicator of household spending, and a slight increase in unemployment to 5.1 percent.
Experts view China’s post-COVID recovery in 2023 as possibly the most disappointing, and the country faces risks, especially in its real estate market. Financial troubles at major firms, including Evergrande and Country Garden, have eroded buyer trust amid unfinished developments and falling prices.
Despite Premier Li Qiang’s optimistic portrayal of the Chinese market at the Davos meeting, risks persist, emphasizing the need for more active government policy to stimulate economic acceleration. The upcoming release of China’s growth target for 2024 in March will be closely watched as the country grapples with economic challenges on multiple fronts.
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