Editorial | China has cause for cautious optimism as economy restructures
- Despite all the challenges it faced, Beijing recorded growth of 5.2 per cent last year and, by continuing on an innovative path, long-term prospects appear good
The past 12 months were supposed to be a year of recovery, with China’s economy unshackled from zero-Covid measures. By and large it has not disappointed.
The government set a gross domestic product growth target of around 5 per cent compared with 3 per cent in 2022. The rebound trajectory during the year lagged expectations at times, prompting some analysts to lower their forecasts.
The official result of 5.2 per cent confounded them, thanks partly to government efforts to restore growth. The news highlighted the keynote speech of Premier Li Qiang to the World Economic Forum, in which he talked up China as a land of opportunity.
It was positive news amid concerns about investor confidence, a property market slump, deflationary risks and a weak private sector.
That said, the obstacles facing the economy do not justify doom and gloom. A more rational and balanced view focuses on the challenges.
Geopolitical tension is undoubtedly one. Restructuring of the value chain triggered by that tension is another.
