The Chinese mainland's economy made a strong comeback in 2023, rebounding after the post-COVID reopening with real GDP estimated to have grown in line with the authorities' growth target of around 5 percent, according to the International Monetary Fund (IMF).
The IMF announced this positive development in a recent press release following its annual Article IV review of the Chinese economy.
As per the statement on the IMF website, the recovery was primarily fueled by domestic demand, especially private consumption. This surge was supported by proactive macroeconomic policies, including further relaxation of monetary policy, tax relief for firms and households, and increased fiscal spending on disaster relief.
The report highlighted that while inflation decreased in 2023 — largely due to lower energy and food prices — it is projected to rise gradually to 1.3 percent in 2024 as the output gap narrows and the base effects of commodity prices wane.
Moreover, the statement emphasized that decisive policy actions, such as accelerated restructuring in the property sector, could enhance confidence and potentially lead to a better-than-expected rebound in private investment.
An IMF team visited China from October 26 to November 7 to conduct the 2023 Article IV consultation. During their visit, the team engaged in constructive discussions with senior officials from the government and the People's Bank of China, as well as private sector representatives and academics. These discussions focused on exchanging views on China's economic prospects and risks, reform progress and challenges, and policy responses.
Reference(s):
cgtn.com
