What’s in store for China’s GDP, fiscal policy in 2023

GETTING the economy back on track is the Chinese government’s main priority for 2023, after three years of sluggish growth caused by the impact of stringent controls to contain Covid-19 and a slump in the property market.

Leading officials and policymakers held their annual Central Economic Work Conference (CEWC) on Dec 15 and 16, to set policy priorities for 2023. They agreed to stabilise growth and expand domestic demand, confirming the tone set by China’s top decision-making body, the Politburo, at its meeting on Dec 6.

The official readout from the conference said that next year’s main priorities will include boosting the recovery and expansion of consumption, as well as supporting private businesses, while supporting the property sector to ensure its stable growth. Fiscal policy will be more forceful, and continue to be proactive. Monetary policy will be targeted and forceful while remaining prudent, according to the readout.