Expectations of Domestic Economic Recovery Grow Increasingly Positive; Foreign Investors Are Bullish on China’s Economy

29 provinces and municipalities set their expected economic growth at around 5% or even higher for this year.

With the recent rapid rebound in transportation, culture and tourism, catering, and accommodation, confidence in China’s economic development has increased significantly at home and abroad. The “two sessions” reveal that 29 out of 31 provinces, autonomous regions, and municipalities have set their expected economic growth for this year at around 5% or even higher. Many international organizations and institutions have raised the expected growth rate of China’s economy, estimating a 5% or even higher growth rate in 2023. The International Monetary Fund (IMF) believes that, against the backdrop of a continuing faltering economy, post-epidemic China will be the biggest driver of global growth this year.

Many municipalities have issued auto consumption vouchers to help expand domestic demand.
In order to further expand domestic demand and promote public consumption, many municipalities have issued auto consumption vouchers one after another. In the first half of 2023, Shandong Province will continue to issue 200 million yuan of auto consumption vouchers to support consumers in new-energy passenger cars, fuel passenger cars, and scrap old cars to buy ones, with a maximum of 6,000 yuan, 5,000 yuan and 7,000 yuan of vouchers for three types of car purchases, respectively. Jinhua in Zhejiang Province will issue 37.5 million yuan of consumption vouchers for the Chinese New Year, including 29 million yuan of auto consumption vouchers. Wuxi in Jiangsu Province will issue “Enjoy the New Year” consumption vouchers for new-energy autos, and the total amount of vouchers to be issued is 12 million yuan.

China’s economy is resilient and dynamic with high potential. With the continuous adjustment of epidemic prevention and control measures, China’s economy is expected to generally recover this year, which provides solid support for a stable increase in auto consumption. Considering various factors, the auto consumption market is expected to maintain its growth momentum in 2023.

UN Report forecasts China’s economic growth in 2023
On January 25, the United Nations released “World Economic Situation and Prospects 2023”. The report predicts that China’s domestic consumer demand will rise in the coming period as the Chinese government optimizes its anti-epidemic policies and takes favorable economic measures. Accordingly, China’s economic growth will accelerate in 2023 and is expected to reach 4.8%. The report also predicts that China’s economy will drive regional economic development.

WTO Director-General: China is the engine of global growth
Local time on January 20, the World Economic Forum 2023 annual meeting closed in Davos. WTO Director-General Iweala said that the world is yet to fully recover from the impact of the epidemic, but the situation is improving. China is the engine of global growth, and its re-opening will drive its domestic demand, which is a favorable factor for the globe.

Foreign media are bullish on China’s economy: a solid recovery is just around the corner
Many foreign institutions have raised their expectations for China’s economic growth in 2023. Xing Ziqiang, the chief economist at Morgan Stanley, expects China’s economy to recover in 2023 after the faltering period. Economic growth is expected to reach 5.4 percent this year and remain around 4 percent in the medium to long term. Lu Ting, a chief Chinese economist at Nomura, argues restoring the confidence of the domestic public and international investors in China’s economy is a top priority and the key to sustainable economic recovery. China’s economic recovery in 2023 is almost certain, but it is also important to anticipate the difficulties and challenges. China’s GDP is expected to grow by 4.8% this year.