China’s GDP growth to pick up in 2023, but pace hinges on reopening

CHINA has had a very challenging 2022, but market watchers expect the country’s gross domestic product (GDP) growth could accelerate to as much as 5 per cent next year on the back of an exit from its zero-Covid protocols.

China’s real GDP is on track to grow 3 per cent this year, significantly lower than its growth target of around 5.5 per cent, as the emergence of the more transmissible Omicron variant challenges Beijing’s zero-Covid policy.

The strict two-month lockdown in Shanghai in the months of April and May led to severe disruptions, resulting in a 10.4 per cent quarter-on-quarter contraction in real GDP growth in the second quarter. Moreover, Covid cases are rising again in many major cities, including Shanghai.