China starts 2023 with powerful economic rebound

BEIJING, March 15 (Xinhua) -- The Chinese economy has made a flying start to 2023, with major economic indicators seeing steady expansion, offering the latest evidence that the world's second largest economy is set to secure a powerful recovery this year.

China's value-added industrial output went up 2.4 percent year on year in the first two months, data from the National Bureau of Statistics (NBS) showed Wednesday.

The growth rose by 1.1 percentage points from the level in December 2022, and the two-year average growth stood at 4.9 percent.

The country's retail sales of consumer goods increased 3.5 percent year on year during the period, reversing declines seen in the previous three months. Sales of consumption-upgrading goods like jewelry expanded quickly.

Other major economic indicators, including fixed-asset investment and the index of services production, also posted year-on-year growth, the NBS data showed.

"In the first two months, the Chinese economy steadily recovered with rising production demand, stable employment and consumer prices, and improved market expectations," NBS spokesperson Fu Linghui told a press conference.

The rebound of consumption is a bright spot of China's economic operations in the Jan.-Feb. period, said Fu.

Over the past Spring Festival holiday, the first since China optimized its COVID response, the country witnessed a booming domestic market and expanding consumption in various sectors such as travel, culture, entertainment and catering.

Fu noted that China has many favorable conditions for a continued consumption recovery throughout the year, as the market is underpinned by a population of 1.4 billion, while a set of pro-consumption measures were introduced by the central and local governments to unleash further consumption potential.

As for this year's economic targets, Fu said "China has the conditions, foundation and confidence" to meet its 2023 economic growth targets through hard work.

An array of development tasks for 2023 were mapped out in a government work report adopted Monday at the first session of the 14th National People's Congress.

The report unveiled a target for the Chinese economy to expand by around 5 percent this year, faster than the 3-percent growth recorded in 2022. Other objectives include creating around 12 million urban jobs, the consumer price index increasing by around 3 percent, and personal income rising generally in step with economic growth.

China's economic development is supported by multiple advantages, including a vast market, a complete industrial system, abundant human resources and a growing driving force for innovation and development, said Fu.

While acknowledging advantages, Fu also warned of difficulties and challenges confronting the economy, including external challenges stemming from lingering high inflation, weakening economic and trade growth globally and rising protectionism.

To brave the challenges, China will consolidate the foundation for stable growth. A spate of pro-growth policies was announced in the government work report, including giving priority to the recovery and expansion of consumption, 3.8 trillion yuan (about 553 billion U.S. dollars) of special-purpose local government bonds, and continued tax and fee cuts to relieve burdens for businesses.

China will also underscore efforts to pursue high-quality development with policy priorities including accelerating the modernization of the industrial system and promoting the transition to a green development pattern, according to the government work report.