Despite global economic uncertainty, the Chinese economy is off to a strong start this year, according to a government official in Beijing.
At the economic summit of the ongoing China Development Forum 2023, Han Wenxiu, executive deputy director of the office of the Central Committee for Financial and Economic Affairs, stated that the country had hit the “fast-forward” button on its economic growth after optimizing the epidemic prevention and control measures.
Han, citing important economic indicators in the first two months, said that passenger flows, logistics, and business visits in China are quickly returning to normal, and that domestic demand has returned.
Retail sales, an indicator of consumer spending, rose 3.5% year over year in January and February, following three consecutive months of decreases.
The index measuring China’s service sector output increased by 5.5% during the period, while value-added industrial output increased by 2.4%.
Han claims that business and investor optimism are both on the upswing thanks to the quicker adoption of enabling legislation. He went on to clarify that China’s 2023 growth target was established after taking into account concerns like stagflation risks and spillover effects produced by the tightening monetary policies of developed countries.
The Chinese government has projected that the country’s economy will grow by about 5% in 2023.
Han predicted that China would continue to play a crucial role in driving global economic growth, saying, “The current development momentum indicates a positive hope for the full-year growth target.” He predicted that by 2022, China’s contribution to global economic growth will top 30% annually, providing both market demand and a significant drive for a worldwide economic recovery.
The Chinese official added that China is taking the initiative to stabilize global industrial and supply networks, mitigate financial risks, court international investments, and defend multilateralism. Han predicts that increased investment in Chinese modernization will help recover the economy over the medium to long term. Also, China would increase its scientific and technological prowess, as well as its worldwide innovation partnerships.
Han stated that the Chinese government would continue its high-level opening up and work to strengthen its birth policies and aged care service system. He went on to say that China’s drive toward modernization would provide the global economy a much-needed boost. There will be continued expansion of cashless transactions in 2022.
Meanwhile, a report from China’s central bank indicated that non-cash transactions processed by banks in the country kept growing steadily in 2022, with electronic transactions maintaining their rapid increase.
The People’s Bank of China said that in 2018, non-cash payments reached 4,805.77 trillion yuan (about 702.86 trillion U.S. dollars) via bank cards, electronic payment vehicles, commercial papers, credit transfers, and other settlements, growing 8.84 percent year over year.
The research revealed that electronic payments accounted for a whopping 99% of all non-cash transactions, with a total transaction value of 3,110.13 trillion yuan. In 2022, the total value of all credit and debit card transactions was 1,011.94 trillion yuan, an increase of 0.98 percent from the previous year.
The total amount of money transferred via non-banking payment networks in 2022 was 337.87 trillion yuan, down 4.95 percent from the previous year.
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