In order to account for a post-reopening rebound in domestic demand, particularly for services, Moody’s Investors Service recently raised its estimate for China’s real GDP growth from 4 percent to 5 percent for both 2023 and 2024.
According to the most recent revision of Moody’s global macro outlook 2023–24, the Chinese government’s move to loosen COVID-19 restrictions will inevitably result in an increase in the nation’s economic activity of 3 percent in 2022. The credit rating agency anticipates that a resurgence in spending will begin this spring, supported by pent-up demand for non-traded services.
The nation’s central bank, the People’s Bank of China, is supplying liquidity assistance to the economy as it restarts and to control the real estate market. According to Moody’s, the extent and longevity of the recovery will determine how much more monetary policy relaxation is necessary.
Source: China Daily
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