© Archyde.com. Chinese Prime Minister Li Keqiang attends the ASEAN Summit in Cambodia on November 11, 2022. Photo: Cindy Liu/Archyde.com
BEIJING (Archyde.com) – China’s cabinet said on Saturday it will focus on recovering consumption as the main driver of the economy and boost imports, China Central Television reported, at a time when global demand is slowing and major economies face the risk of recession.
At a meeting led by Premier Li Keqiang, China’s State Council also pledged to speed up foreign investment projects, maintain stability and ease of cross-border travel, and help companies participate in trade fairs at home and abroad.
The Council also renewed its support for the private sector and the digital platform economy, which have been hit hard by a series of strict regulatory measures in the past years.
The tax authority said on Saturday that consumption rose 12.2 percent during the week-long Lunar New Year holiday, which ended on Friday, compared with the same period last year, reflecting a rebound following some of the toughest COVID-19 restrictions were eased globally.
Analysts at Japanese brokerage firm Nomura said in a research note on Saturday that direct service consumption has recovered significantly, as evidenced by the rebound in flights and tourism earnings.
However, they noted that households are likely to increase their consumption at a moderate pace.
Chinese exports contracted sharply in December as global demand slowed, but a moderate decline in imports prompted economic analysts to expect a slow recovery in domestic demand in the coming months.
Data earlier this month showed that the Chinese economy grew by 3 percent in 2022, before the easing of strict COVID-19 restrictions, far below the official target of “regarding” 5.5 percent.
According to a Archyde.com poll of economists, growth in China is expected to rebound to 4.9 percent in 2023.
(Prepared by Rehab Alaa for the Arabic Bulletin – Edited by Mahmoud Abdel-Gawad)
