In the second quarter of 2023, China’s GDP has increased by more than 6% compared to 2022, although in recent quarters Chinese economic growth is slowing down significantly. Growth expectations for the next years are also not optimistic, given the structural problems that the country is confronted with in the aftermath of the pandemic. In an international comparison, China’s economic growth rates have been high in the past quarters as a result of the strong economic recovery after a year marked by repeated and sporadic COVID-related lockdowns, which led to high volatility in economic activity. Inflation rates have been relatively stable, suggesting that the country has been affected little by the economic uncertainty related to the Russian invasion of Ukraine, and by the rise in energy prices which led to significant price increases among Western countries. The OECD economic outlook expects inflation to stabilize in the range of 1.6-2.5% until the end of 2024. Unemployment has decreased further to 5.2%.

October 2023