China to Contribute 40% to Global Economic Growth, Economist Says

A report from chinadaily.com.cn on Feb. 16th, 2023:

China’s economy is expected to grow by 5.7 percent in 2023, contributing to around 40 percent of the global economic growth, said Robin Xing, Morgan Stanley’s chief China economist.

The world’s second-largest economy will play a key role in boosting global economic growth this year, and China’s growth prospects will have positive spillover effects for other economies in areas like trade and tourism, Xing told the media on Monday in Beijing.

“Both the United States and Europe may face a year of subdued growth, and China, with an anticipated 5.7 percent growth in 2023, will benefit them a lot,” Xing said.

For instance, he said Europe will benefit from the huge demand for medium to high-end luxury goods in the China market, and Chinese outbound tourism spending will be beneficial for many economies and sectors, especially in Asia.

Looking ahead, Xing said China will likely set a 2023 GDP growth target of above 5 percent, with measures such as further waves of monetary and fiscal easing to support the rebound.

When it comes to inflationary pressures amid a gradual recovery in demand, Xing said he believes inflation will not be a major concern this year, and the country may set a target of around 3 percent annual consumer inflation in 2023.