BEIJING: China’s economic system final yr suffered certainly one of its worst annual performances in additional than three a long time, official figures confirmed Wednesday, because the nation battled a crippling property disaster, sluggish consumption and world turmoil.
Gross home product expanded 5.2 % to hit 126 trillion yuan ($17.6 trillion), China’s nationwide bureau of statistics reported.
Official GDP figures stay a key supply of perception into the well being of the world’s second-largest economic system, regardless of being eminently political.
Wednesday’s studying is an enchancment on the three % growth recorded in 2022, a yr that noticed enterprise exercise hammered by tight well being curbs designed to include Covid-19.
However excluding the pandemic years, 2023 marked China’s weakest efficiency since 1990.
After lifting its draconian pandemic measures on the finish of 2022, Beijing set itself a progress goal of “round 5 %” for final yr.
The economic system loved an preliminary post-pandemic rebound, however ran out of steam inside months as a insecurity amongst households and companies battered consumption.
An intractable actual property disaster, document youth unemployment and a world slowdown are additionally gumming the gears of the Chinese language progress engine.
The nation’s exports — traditionally a key progress lever — fell final yr for the primary time since 2016, in line with figures printed by the customs company on Friday.
Geopolitical tensions with america and efforts by some Western nations to cut back dependence on China or diversify their provide chains have additionally hit progress.
Officers are attributable to launch their progress goal for 2024 in March.
– ‘Alternative’ –
Weighed down by a scarcity of enterprise confidence and sluggish consumption, China has sought to lure again worldwide traders.
Talking on the annual assembly of worldwide elites in Davos on Tuesday, Premier Li Qiang painted a bullish image of the Chinese language economic system.
“Regardless of how the world scenario modifications, China will adhere to its fundamental nationwide coverage of opening as much as the skin world,” Li mentioned.
He added that “the door to opening up will solely get wider and wider”.
“Selecting the Chinese language market will not be a danger however a chance,” he mentioned.
However dangers abound — most prominently within the nation’s teetering actual property market.
The sector has lengthy accounted for round 1 / 4 of China’s economic system, and skilled dazzling progress for 20 years.
However monetary woes at main corporations reminiscent of Evergrande and Nation Backyard at the moment are fuelling purchaser distrust towards a backdrop of unfinished housing developments and falling costs.
Property has lengthy been seen by many Chinese language as a secure place to park financial savings, however worth drops have hit their wallets exhausting.
Additionally weighing down the economic system is a scarcity of jobs for the nation’s youth.
A document of a couple of in 5 folks aged 16 to 24 in China have been unemployed in Might, in line with officers.
Beijing has since suspended the month-to-month publication of youth unemployment figures.
Gross home product expanded 5.2 % to hit 126 trillion yuan ($17.6 trillion), China’s nationwide bureau of statistics reported.
Official GDP figures stay a key supply of perception into the well being of the world’s second-largest economic system, regardless of being eminently political.
Wednesday’s studying is an enchancment on the three % growth recorded in 2022, a yr that noticed enterprise exercise hammered by tight well being curbs designed to include Covid-19.
However excluding the pandemic years, 2023 marked China’s weakest efficiency since 1990.
After lifting its draconian pandemic measures on the finish of 2022, Beijing set itself a progress goal of “round 5 %” for final yr.
The economic system loved an preliminary post-pandemic rebound, however ran out of steam inside months as a insecurity amongst households and companies battered consumption.
An intractable actual property disaster, document youth unemployment and a world slowdown are additionally gumming the gears of the Chinese language progress engine.
The nation’s exports — traditionally a key progress lever — fell final yr for the primary time since 2016, in line with figures printed by the customs company on Friday.
Geopolitical tensions with america and efforts by some Western nations to cut back dependence on China or diversify their provide chains have additionally hit progress.
Officers are attributable to launch their progress goal for 2024 in March.
– ‘Alternative’ –
Weighed down by a scarcity of enterprise confidence and sluggish consumption, China has sought to lure again worldwide traders.
Talking on the annual assembly of worldwide elites in Davos on Tuesday, Premier Li Qiang painted a bullish image of the Chinese language economic system.
“Regardless of how the world scenario modifications, China will adhere to its fundamental nationwide coverage of opening as much as the skin world,” Li mentioned.
He added that “the door to opening up will solely get wider and wider”.
“Selecting the Chinese language market will not be a danger however a chance,” he mentioned.
However dangers abound — most prominently within the nation’s teetering actual property market.
The sector has lengthy accounted for round 1 / 4 of China’s economic system, and skilled dazzling progress for 20 years.
However monetary woes at main corporations reminiscent of Evergrande and Nation Backyard at the moment are fuelling purchaser distrust towards a backdrop of unfinished housing developments and falling costs.
Property has lengthy been seen by many Chinese language as a secure place to park financial savings, however worth drops have hit their wallets exhausting.
Additionally weighing down the economic system is a scarcity of jobs for the nation’s youth.
A document of a couple of in 5 folks aged 16 to 24 in China have been unemployed in Might, in line with officers.
Beijing has since suspended the month-to-month publication of youth unemployment figures.
