DAVOS, Switzerland — Chinese Vice Premier Liu He laid out an optimistic vision for the world’s second largest economy following the battering it took over nearly three years of lockdowns, quarantines and strict Covid-19 containment measures, according to AP.
Liu, a senior economic official on the State Cabinet, China’s Cabinet, said Tuesday in an address at the World Economic Forum gathering in Davos, Switzerland, that “if we work hard enough, we are confident that in 2023, China’s growth will most likely return to its normal trend. The Chinese economy will see a significant improvement.”
Liu said China expects to see a major rise in its imports, more investment by companies and return to regular consumption habits over the coming months. He says easing Covid restrictions ending quarantines for people arriving from abroad are key factors in the economy’s recovery.
His remarks come after China on Tuesday released data showing China’s economic growth fell to its second-lowest level in at least four decades last year under pressure from anti-virus controls and a real estate slump.
China’s economy grew by 3 per cent in 2022, less than half of the previous year’s 8.1 per cent rate. That was the second-lowest annual rate since at least the 1970s after 2020, when growth fell to 2.4 per cent.
Liu emphasised government efforts to manage the earlier decline, particularly in supporting the real estate industry that accounts for 40 per cent of all bank lending and 50 per cent of local government revenue. After years of breakneck economic growth, he says China’s goal is “high quality economic development,” reforming state-owned enterprises and supporting the private sector.
He also reiterated China’s commitment to its carbon reduction goals and to improving its environment. China has said it will peak carbon output by 2030 and become carbon neutral by 2060. He says China will do so through a mix of renewables.
China, the world’s largest carbon emitter, relies on coal to generate most of its energy.
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