STELLAR PHOTO RECOVERY 9 KEY SERIES

The additional bonds were allocated to local governments through transfer payment to increase the fiscal deficit from 3.88 trillion RMB to 4.88 trillion RMB as well as increase the deficit ratio from 3% to about 3.8%.Ĭoncurrently, the State Council made advanced arrangements to allow local governments to front-load part of 2024 local bond quotas. Specifically, China issued one trillion RMB (US$138.96 billion) of sovereign bonds in the fourth quarter of 2023 in a special national debt management plan. To help local governments tackle these difficulties, the Sixth Session of the 14th Standing Committee of the National People’s Congress (NPCSC) voted and passed the resolution by the State Council on 24 October 2023 for the issuance of additional sovereign bonds and adjustments to the 2023 national budget. Together with the debt burden accumulated over time, it was challenging to increase investment and expand production. Local government revenue had stagnated as a result of the persistently weak real estate and land markets. Extreme climate disasters such as rainstorms, floods and typhoons occurred in many places, and post-disaster recovery and reconstruction tasks were heavy burdens locally. Urgent need to alleviate local fiscal difficultiesĢ023 was a year of severe local fiscal pressures in China.

Hence, I predict an upturn and further recovery in China’s economy in the second half of 2024. In 2023, China’s policy adjustments were effective and Chinese enterprises recovered strongly, but it will take some time for policies and industrial production to take effect. Pinduoduo, SHEIN and other enterprises that ventured overseas had also developed rapidly. From January to September, China exported 3.4 million cars, surpassing the export volumes of Japan and Germany. In August, the profits of industrial enterprises above designated size in China turned positive.

STELLAR PHOTO RECOVERY 9 KEY SERIES

The series of curbs by developed nations led by the US failed to halt the development of China’s enterprises. However, there is no need to worry excessively because even with all its difficulties, China remains one of brightest economic performers in the world in 2023. This aerial photo taken on 21 January 2024 shows workers at a construction site of residential buildings in Huaian, in China's eastern Jiangsu province. it will take some time for policies and industrial production to take effect. In a time of market adjustments, some enterprises and individuals may not have felt tangible growth. New and rapid technological changes brought about more challenges for industrial upgrading and innovation.ĭomestically, the problems of local debt were more acute, with the real estate sector yet to bottom out as well as greater pressures on increasing investment and consumption. Globally, overall demand had fallen in the economic downturn, resulting in uncertain market sentiments. (NB: Official data on 17 January reported that China’s overall 2023 growth rate was 5.2%.) External and internal factors tested China’s economyĪlthough the results are within expectations, the process was gruelling as multiple external and internal factors had impacted the market in 2023. This will help stabilise market confidence and lay the foundation for China’s stable economic growth in 2024. (NB: Official data on 17 January showed that China’s 4th quarter GDP rose by 5.2% year-on-year.)īased on each quarter’s economic data, there is little doubt that GDP growth in 2023 will be between 5% and 5.5%, and the targets set at the beginning of the year will be met. Although the fourth quarter’s economic data have not all been announced, sentiments and expectations are more stable. However, the various economic indices showed signs of recovery in the third quarter.Ĭhina’s GDP growth was 5.2% year-on-year in the first three quarters. The second quarter’s data was below expectations and caused some market anxiety.

Strong growth in the first quarter was a great start that calmed nerves that had persisted for some time, but it also raised expectations. The year 2023 was the year China's economy returned to stability and showed encouraging signs despite the many ups and downs.

Stellar photo recovery 9 key