Bright prospects for Chinese economy: China Daily editorial

The COVID-19 pandemic's blow to the Chinese economy has been severe, as evidenced in the worse-than-expected economic figures in November. Trade in goods increased by only 0.1 percent compared with the same period last year. And retail sales, a key measure of consumer spending, were down 5.9 percent last month year-on-year, a major decline compared with the 0.5 percent drop in October. Meanwhile, the surveyed urban jobless rate increased to 5.7 percent from 5.5 percent in October.

But with the introduction of the optimized prevention and control measures, removing the uncertainties caused by lockdowns, production suspension and logistic disruptions to the economy over the past three years, it is anticipated that the most difficult period for the economy has passed.

Now with the flows of production factors gradually becoming smooth, and socioeconomic activities picking up steam, the huge potential of the Chinese market will be further released, and the economy is expected to be revitalized in the days to come. One of the brightest spots in China's economic development is investment in the high-tech sector, which climbed by 19.9 percent in the first 11 months of the year, as compared with a 5.3 percent increase in China's total fixed-asset investment over the same period.

Moreover, the total added value of high-tech manufacturing surged 8 percent compared with the same period a year ago, with the output of such products as new-energy vehicles and solar cells increasing by 100.5 percent and 44.1 percent, respectively. The industrial restructuring and upgrading will continue to provide added momentum to China's high-quality development, which in a way also demonstrates the resilience of the economy.

The promising prospects have prompted many international financial service agencies to upgrade the outlook for China's economy in 2023. Morgan Stanley, for example, raised its forecast for the country's gross domestic product next year to 5.4 percent from 5 percent previously, as the company expects the "faster and sharper rise in mobility" to be reflected in the economy starting in the second quarter.

The International Monetary Fund has also forecast that China's growth will accelerate to 4.4 percent next year, as compared with a meager 1 percent growth for the United States, and just 0.5 percent growth for the eurozone. All this indicates that China will continue to be the major countercyclical stabilizer of the global economy.

Looking forward, the government will step up efforts to ensure steady growth and spur market vitality to promote the overall improvement of economic operation next year. 2022 was undoubtedly a challenging year for China's economy, but the country withstood the test and confidence is high that the prospects are immeasurably brighter for 2023.