The Chinese economy is struggling to achieve a convincing recovery. Today, even Chinese leader Xi Jinping warns of the many demanding situations the country’s economy will face in 2023.
“Some businesses have faced difficult times. Other people have had difficulties finding jobs and meeting their fundamental needs,” Xi said in a speech to inaugurate the year 2024 on Sunday, according to an official transcript. He also described demanding situations as “headwinds. ”
It’s the first time Xi spoke about economic difficulties since he started giving New Year’s messages in 2013, per CNN.
Despite his rare and outspoken acknowledgment of China’s economic woes, Xi touted the country’s victories for most of his speech, praising the progress of its sustainable industries and the decline in domestic tourism.
China’s economy grew by 3. 0% in 2022, one of its worst effects in nearly a century, as the country grappled with intense COVID-era restrictions and a property crisis that lasted until 2023. Beijing tried to improve the Chinese economy by introducing measured measures. stimulus measures, but analysts say they are not enough.
Xi’s speech came hours after an official survey of Chinese brands showed factory activity for the third straight month, with the country’s purchasing managers’ index hitting a six-month low of 49 in December, a six-month low. .
Economists at Nomura wrote in a note Tuesday that China’s underlying expansion momentum will likely remain “lackluster. “
“Despite a spate of stimulus measures announced recently, we believe it is still too early to call the bottom, and there might be another economic dip in spring 2024 due to a faltering property sector, the fading of pent-up demand, sagging external demand, excess capacity in some ‘green’ sectors and persistent geopolitical headwinds,” wrote the Nomura economists.
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