The acceleration also reflects the base effect of comparison given the paralysis of economic activity in the previous year, caused by the policy of ‘zero cases’ of covid-19. China’s GDP grew 3 percent in 2022, one of the lowest rates in the last 40 years.
In the fourth quarter of last year, the Chinese economy also grew 5.2 percent compared to the same period last year. On a quarterly basis, the economy grew 1 percent in the fourth quarter, slowing down from the 1.3 percent expansion recorded between July and September.
Officials at China’s National Bureau of Statistics said the measures, including “strengthening macroeconomic regulation and redoubled efforts to expand domestic demand, optimize structure, enhance confidence and prevent and neutralize risks”, helped improve the dynamics of recovery, supply and demand.
Industrial production, which measures activity in the manufacturing, mining and utilities sectors, increased by 4.6 percent in 2023 compared with the previous year, while retail sales of consumer goods grew by 7.2 percent .
Investment in fixed assets – spending on industrial equipment, construction and other infrastructure projects to drive growth – rose 3 percent year on year in 2023.
However, indicators point to an uneven recovery in China. December trade data, released earlier this month, revealed slight growth in exports for the second consecutive month, as well as a slight increase in imports.
However, consumer prices fell for the third consecutive month, signaling the persistence of deflationary pressures. Chinese Premier Li Qiang said at the World Economic Forum in Davos (Switzerland) on Tuesday that China had achieved its economic goal without resorting to “massive stimulus”.
Li Qiang stated that the country has “good and solid foundations in its long-term development” and that, despite some setbacks, the positive trend in the economy continues.
The slowdown also reflects Beijing’s efforts to deleverage the economy, aiming to reduce financial risks and build a model based on the production of goods with added value and efficient allocation of resources.
But the disruptions caused by the pandemic and the liquidity crisis in the real estate sector, which accounts for around 70% of Chinese household wealth, according to different estimates, affected consumer confidence and weighed on the economy.
*With Lusa
