China Sets Economic Growth Targets for 2023

China Sets Economic Growth Targets for 2023

Several major Chinese provinces and cities have released their economic growth targets for 2023. These reports show the local authorities’ expectations in the near term. Most targets are above 5%, which is quite an ambitious line. Furthermore, local governments across the country will attend annual legislative sessions this week to lay out their respective policy goals for this year. In March, the government will hold the national parliamentary session, and the premier will disclose the nation’s GDP growth target then.

On Thursday, Guangdong, the southern manufacturing and export giant, stated that it plans to grow its economy by 5% or more in 2023. Meanwhile, Wang Weizhong, the provincial governor, announced that its economy had expanded by approximately 2% in 2022. However, the target was 5.5%. Wang also noted that it was not easy to achieve that result as the economy had encountered various obstacles not seen in many years. That includes supply chain blocks, lower demand, and weakening expectations. The coronavirus pandemic also damaged China’s economy.

However, the country reopened its borders after long months of lockdowns and restrictions, and economists are more hopeful, anticipating the recovery.

How Will the Guangdong Province’s Government Encourage Growth?  

This year, Guangdong plans to focus on growing its economy. It will support the manufacturing industry, aid private businesses, and accelerate economic integration with neighboring Macao and Hong Kong. Considering that this province accounts for more than a tenth of China’s economic output, its rebound is important. In 2021, Guangdong’s GDP was slightly higher than South Korea’s, and the latter is the tenth-largest economy worldwide.

Three years of COVID-19 lockdowns hit China with a persistent property market decline. Most analysts expected growth to drop to a rate between 2.7% and 3.3% for the last year. That’s considerably lower than the government’s target of 5.5%. But policymakers have recently lifted their strict pandemic restrictions, instead focusing on boosting growth.