As a result of the robustness and potential of its economy, economists anticipate that China will continue to be a dependable and significant driver of global economic growth in 2023.
China has maintained the overall stability of its economy despite multiple challenges this year by effectively coordinating COVID-19 policy with economic and social development, and by introducing a series of stimulus packages to support enterprises, stabilize consumer prices, and boost global investor confidence.
The annual Central Economic Work Conference, which was held in Beijing from Thursday to Friday, projected that China's economic performance in 2023 will have a general rebound and improvement.
The Central Economic Work Conference, which elaborated on the fiscal and monetary, industrial, research and technology, and social policies for 2023, made economic stability a major priority and urged sustained progress while ensuring economic stability for the following year.
According to a meeting called by the Political Bureau of the Central Committee of the Communist Party of China earlier this month, China has also vowed to increase domestic demand and to give full play to the fundamental role of consumption and the essential role of investment in 2023.
Observers anticipate that the Chinese economy will do well in 2023, given that Beijing has a variety of policy tools at its disposal to ensure a robust rebound.
Kristalina Georgieva, managing director of the International Monetary Fund, stated that China has fiscal space to stimulate its economy and counteract the negative trend.
"We foresee three to four quarters of high growth beginning in the second or third quarter of next year," analysts at the international financial services firm Societe Generale said, predicting the Chinese GDP may increase by almost 5 percent in 2023.
Morgan Stanley forecast in a recent analysis that China would mount a recovery by mid-2023, hitting 5% annual growth.
The optimism of the analysts is founded on several good signs and indicators.
Monday's research note from UBS analysts Christopher Swann and Vincent Heaney stated, "Chinese equities have surged 37 percent since the beginning of November due to repeated favorable reopening signals from Beijing."
A number of global corporations are growing their operations and investments in China. In the first ten months of the year, foreign direct investment in the Chinese mainland rose 17.4 percent year over year to 168.34 billion U.S. dollars, according to government figures.
Volkswagen, a German automobile manufacturer, has announced investments of up to $3 billion in two new R&D-focused joint ventures in China during the second half of 2022.
"The largest corporations that have invested billions of dollars in local assets are remaining put and executing their investment plans," Rhodium Group reported in a report released on Tuesday, showing investors' confidence in China's market prospects.
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