China’s economy is poised to bounce back next year, boosted by its energy and policy reforms, a US economist has said.
“2023 should be a stable year, there are many incentives for investment,” Albert Keidel, an economist who works in East Asia, told Xinhua in a recent interview.
“With rising inflation, China has an opportunity to use its economic stimulus tools to boost the economy now and in 2023,” he said, adding that “the underlying economy will remain healthy.”
Keidel, an associate professor of economics at George Washington University, said China’s economy has remained strong amid the COVID-19 crisis and a tough global environment.
Sectors such as high-tech, e-economy and e-commerce have provided strong growth, which is reflected in the main economic indicators so far this year, he said.
“What’s interesting is that economic growth is high, especially in the public sector,” which also points to continued growth next year and beyond, said Keidel, a former senior fellow at the Atlantic Council, a US think tank.
Also, the sharp increase in foreign investment in China showed “a lot of confidence there” from investors around the world, he said.
The economist, who was also an economist at the World Bank office in Beijing, said that China’s policies on COVID-19 over the past three years have helped to reduce the disruption of its structure and labor movement, establishing the economic base.
As China works to control the spread of the epidemic, more potential will be released, especially in sectors that require face-to-face services such as restaurants and food services, he said.
Looking ahead to 2023, “China’s economy will be strong,” and “it will be a bright spot in the world,” and provide “a point of support for global demand,” Keidel said.
The expert, who authored “China’s Economic Crisis: A Random Success,” a book that examines the economic strategies that have underpinned China’s economic growth for decades, said he is confident of China’s continued growth.
The combination of smart investment in gross domestic product (GDP) and the need to manage demand through strategic policies is a key factor behind China’s economic growth over the past few decades. he said, adding that these same forces will continue to drive China’s economic development.
The annual meeting of the Central Economic Work held in Beijing last week said that China’s economic performance in 2023 is expected to witness recovery and improvement.
In defining the economic and financial, industrial, scientific and technological, and social policies for 2023, the Central Economic Work Conference made economic stability a priority and sought to pursue steady progress and ensure economic stability in the year next.
China also pledged to increase domestic demand and provide a significant share of food and a major share of the economy by 2023, according to a meeting called by the Political Bureau of the Communist Party of China Central Committee earlier this month.