China's GDP grows 5.2% in 2023, exceeding government target
China's economy saw a growth of 5.2% in 2023, surpassing the government's target of around 5% yearly growth. This increase can be linked to the low GDP of 3% in 2022, which was a result of the COVID-19 pandemic and nationwide lockdowns. Official data showed that the economy also experienced a 5.2% growth during the October-December quarter compared to the same time last year. On a quarterly basis, the economy rose 1% in Q4.
Factors contributing to China's economic recovery
The National Bureau of Statistics in China credited the economic recovery to factors such as enhanced macro regulation and efforts to boost domestic demand as well as prevent and defuse risks. Industrial output went up by 4.6% in 2023 compared to the previous year, while retail sales of consumer goods saw a 7.2% growth. Fixed-asset investment spending on factory equipment, construction, and other infrastructure projects rose by 3% year on year.
Recovery appears to be uneven for China
Trade data from December showed a slight increase in exports and imports, while consumer prices dropped for the third consecutive month due to deflationary pressures. Chinese Premier Li Qiang on Tuesday stated at the World Economic Forum that China reached its economic target without relying on massive stimulus and maintained a solid foundation for long-term development. The ruling Communist Party has been transitioning from government-led investment to consumer demand-driven growth to achieve a more sustainable path to prosperity.
