Foreign-Funded Banks Optimistic About China's Economic Growth Following Strong 2023 Performance

Foreign-funded financial institutions are optimistic about China's economic development, as the country's economic data for 2023 exceeded expectations. China's gross domestic product (GDP) grew by 5.2% year-on-year, reaching a new high of 126.06 trillion yuan (about $17.74 trillion) last year, surpassing the government's annual target of around 5%.

Experts from institutions like J.P. Morgan and UBS noted that China's policies have become more active and targeted in stabilizing economic growth. In the fourth quarter of 2023, key indicators such as retail sales, exports, and industrial output saw year-on-year growth, and GDP slightly exceeded expectations.

Analysts predict that China's economic recovery will continue to consolidate in 2024, with consumption being the main driver of growth, thanks to a drop in the household savings rate. Employment in key industries, especially in high technology, is also expected to boost consumer confidence.