China leads Asia’s economic growth in 2023

The International Monetary Fund (IMF) predicted early this year that China’s economy will contribute a quarter of global growth this year, although uncertainty over COVID-19 and the real estate sector could slow the momentum, as confirmed by recent reports on Chinese growth.

Experts from the Asian Development Bank (ADB) in Beijing have predicted that China’s economy will become the only one with accelerated growth during this year 2023, extending to the surrounding region as well.

The Bank reports that China’s economic growth is likely to rise by 5% this year, while economies in Asia and the Pacific are expected to grow by 4.8% during the same period.. Excluding China, other developing economies in Asia are expected to grow 4.6 percent this year.

The Bank’s report said China’s economy would rebound due to high consumption demand.

Fiscal spending, such as investment in infrastructure, will continue to be needed, especially as external demand declines in 2023, with growth slowing in developed economies.

The bank called on China to take a large number of reform measures to boost potential growth in the coming years, especially with the crises hitting the world’s banking system, including promoting capital inflows into sectors with higher returns, raising the retirement age, improving education, and expanding market access for foreign investors.