China GDP: economy predicted to hit 2023 growth target, but action still needed to ensure long-term stability
- Institute of Economics at the Chinese Academy of Social Sciences believes China’s economy will grow by 5.1 per cent in the fourth quarter
- But it warned that it is necessary to implement policies in advance to ensure the stable and healthy development of China’s economy next year
China is expected to achieve Beijing’s economic target for 2023, with a leading governmental think tank predicting 5.1 per cent gross domestic product (GDP) growth in the fourth quarter, but stronger countercyclical policies are still needed to ensure long-term stability.
Economic growth is largely set to be driven by the booming service sector, while new domestic and external challenges are emerging, it said in a report on Friday.
The Chinese economy is currently experiencing a period of favourable tailwinds for the service sector recovery
“The Chinese economy is currently experiencing a period of favourable tailwinds for the service sector recovery, coupled with the headwinds of declining global demand for manufacturing products,” the CASS report said.
China is expected to release its third quarter GDP data next week, as well as key retail sales and industrial production data for September.
It is, though, in the throes of an economic slowdown as demand remains subdued, while the slumping property market, debt-ridden local governments and a bleak export outlook continue to erode confidence in the private sector.