2023: China to assist global economic revival

Given its economic endurance and potential, researchers expect China will continue to drive global growth in 2023.

China has maintained the overall stability of its economy by aligning COVID-19 policy with economic and social development and adopting a series of stimulus packages to promote firms, stabilize consumer prices, and enhance global investor confidence.

China's economic performance in 2023 is predicted to improve, according to the annual Central Economic Work Conference in Beijing.

The Central Economic Work Conference elaborated on fiscal and monetary, industrial, scientific and technology, and social policies for 2023. Economic stability was a primary concern, and the conference required steady progress while guaranteeing economic stability.

China vowed to enhance domestic demand and play up consumption's fundamental function and investment's vital role in 2023 at a conference earlier this month.

Due to Beijing's multiple policy levers, experts forecast a strong Chinese economy in 2023.

IMF Managing Director Kristalina Georgieva said China has fiscal space to bolster its economy.

"We envisage three to four quarters of robust growth, commencing in 2Q or 3Q of next year," Societe Generale analysts said, forecasting 5% growth in 2023.

Morgan Stanley expected China would recover by mid-2023 and expand 5%.

Multiple good signs and indicators fuel analysts' optimism.

UBS strategists Christopher Swann and Vincent Heaney wrote on Monday that Chinese shares have climbed 37% since November's start.

Multinational companies are increasing in China. Foreign direct investment in China's mainland rose 17.4% year-over-year to 168.34 billion U.S. dollars in the first 10 months.

Volkswagen will invest up to $3 billion in two R&D-focused joint ventures in China in the second half of 2022.

"The largest corporations that have spent billions into local assets are staying put and following through on their investment plans," Rhodium Group said in a study published Tuesday.

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