China has hit the fast-forward button on growth, says official

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China has hit the fast-forward button on growth, says official

This unofficial photo shows Lujiazui, the financial center in Shanghai, forming a perfect backdrop to the Bund area. The Chinese economy will boost steady and sustained development after a good start this year, adding certainty to global growth that has been clouded by upheavals, an official said on Saturday.

The country has hit the fast-forward button on economic growth after it optimized the prevention and control measures, said Han Wenxiu, executive deputy director of the Central Committee for Financial and Economic Affairs, at the economic summit of the ongoing China Development Forum 2023.

Passenger flows, logistics, and business trips in China are normalizing fast, while domestic demand has recovered, said Han, citing major economic indicators in the first two months.

Retail sales, a measure of consumption growth, increased 3.5 percent year-on-year in the January-February period, reversing declines seen in the previous three months.

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In the period, China's value-added industrial output went up 2.4 percent year-on-year, while the index gauging the country's service industry output went up 5.5 percent.

With the accelerated implementation of supporting policies, the confidence of enterprises and investors is on the mend, said Han.

He noted that China's economic operation still faces challenges such as stagflation risks and spillover effects brought by tighter monetary policies in developed economies, and that the country's 2023 growth target is set after taking the above factors into account.

China hopes to expand its economy by around 5 percent in the year 2023, according to the government work report.

Han said that China will remain a key engine in global economic growth because of the current development momentum and the promise of a full-year growth target.

The contribution of China's economy to global economic growth has exceeded 30 percent on average in the past decade, and this year will surpass that in 2022, providing market demand and a strong impetus for the global recovery, he said.

Han pointed out that China is proactive in stabilizing global supply chains, defusing financial risks, attracting foreign investments, and upholding multilateralism.

In order to promote the economy, China will make more efforts in Chinese modernization to cultivate development in the medium and long term, said Han.

He said that China will expand international innovation cooperation and achieve greater self-reliance and strength in science and technology.

Han said that the country would improve birth policies and the elderly care service system and stick to high-level opening up.