China’s economy has been struggling to stage a convincing comeback. Now, even Chinese leader Xi Jinping has acknowledged the many challenges the country’s economy faced in 2023.
“Some enterprises had a tough time. Some people had difficulty finding jobs and meeting basic needs,” said Xi in a Sunday speech to usher in 2024, per an official transcript. He also described the challenges as “headwinds.”
It’s the first time Xi spoke about economic difficulties since he started giving New Year’s messages in 2013, per CNN.
Despite his rare and frank acknowledgment of China’s economic problems, Xi touted the country’s victories for most of his speech, praising the progress of its sustainable industries and the decline of domestic tourism.
China’s economy grew by 3. 0% in 2022, one of its worst effects in part in a century, as the country grappled with intense COVID-era restrictions and an asset crisis that lasted into 2023. Beijing has tried to help the Chinese economy by introducing measured measures. Stimulus measures, but analysts believe that they are not enough.
Xi’s speech came hours after an official survey of Chinese brands showed factory activity for the third straight month, with the country’s purchasing managers’ index hitting 49 in December, a six-month low.
Economists at Nomura wrote in a note on Tuesday that China’s underlying expansion momentum would likely remain “lackluster. “
“Despite a series of recently announced stimulus measures, it is still too early to bottom out, and a further economic slowdown is possible in spring 2024 due to a faltering asset sector, a decline in pent-up demands and falling external demand, overcapacity in some ‘green’ sectors and persistent geopolitical headwinds,” Nomura economists wrote.
Gonna