As a result of severe COVID restrictions and a downturn in the real estate market in the fourth quarter of 2022, China’s economic growth fell to one of its lowest levels in nearly 50 years, putting additional pressure on policymakers to introduce stimulus measures this year.
According to a Reuters poll, growth will pick up to 4.9% in 2023 as Chinese leaders work to address the “zero-COVID” policy and the country’s severe real estate downturn. Most economists predict that starting in the second quarter, growth will pick up.
Strong growth in China could help prevent the anticipated global recession, but it could also fuel more inflationary concerns at a time when policymakers are just beginning to control record price increases. China is likely to pursue economic growth of at least 5% in 2023 to keep a lid on unemployment, policy sources said.
