China’s economy faces ‘greater challenges’ in 2023 as risk of global recession, debt crises grows
- China faces external headwinds ranging from debt shocks in the developing world to spillover form US monetary policy
- Swift support in the form of stronger stimulus will help counter international challenges, Chinese economists say
Uncertainty facing the global economy next year will exacerbate challenges at home for China, economists in Beijing say, while urging swift support to help counter external headwinds.
As the risk of global recession looms, China should stay alert to turbulence in international markets and the potential of another financial crisis, said former vice-finance minister Zhu Guangyao at a forum organised by web portal Sina on Wednesday.
“There could be greater challenges for 2023,” he said.
Debt crises have broken out in some less developed countries following US monetary policy tightening, while war in Ukraine has roiled energy and food markets.
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A recession is looming for Britain and if the US Congress does not raise its debt limit in a timely manner the US Treasury bill market could collapse, unleashing a financial storm, Zhu said.