U.S. economist says Chinese economy expected to deliver solid rebound in 2023
The Chinese economy is poised to deliver solid rebound next year, bolstered by its underlying strength and policy stimulus, a senior U.S. economist has said.
"2023 should be a rebound year, there's a lot of stimulus now in investment," Albert Keidel, a development economist specializing in East Asia, told Xinhua in a recent interview.
"With low inflation, China is in a good position to use its countercyclical tools to stimulate the economy now and in 2023," he said, adding that "the underlying economy remains healthy."
Keidel, an adjunct professor of economics at George Washington University, said China's economy has maintained resilience amid challenges from COVID incursions and a complex international environment.
Sectors such as high-tech, e-economy and e-commerce sales have presented a strong momentum, evidenced in key economic indicators so far this year, he said.
"The strong point is investment levels are quite high, particularly public investments," which also bodes well for continued expansion next year and beyond, noted Keidel, previously a senior fellow at the Atlantic Council, a U.S. think tank.
Moreover, the substantial increase of foreign direct investment in the Chinese mainland showed "a lot of confidence there" from global investors, he said.
The economist, also a former senior economist at the World Bank's Beijing office, said China's COVID-19 policy over the past three years has helped minimize the disruption to the structure and organization of the labor force, laying a foundation for the economy.
As China is making efforts to optimize its pandemic response, more potential in the economy will be unleashed, in particular in the fields that require face-to-face services such as restaurants and catering, he said.
Looking ahead to 2023, "the Chinese economy will be strong," and "will be a bright spot in the world," providing "a node of support in terms of global demand," said Keidel.