China’s growth to be higher in Q2, projected to hit annual 5% target

TIANJIN, China (Reuters) – China’s economic growth in the second quarter will be higher than the first and was projected to reach the annual economic growth target of around 5%, China’s Premier Li Qiang told delegates at the World Economic Forum in Tianjin on Tuesday.

As factory output slows amid weak external and domestic demand, Li said China will roll out more effective policies to expand domestic demand and open markets, as well as continue to act as a strong driving force for the global economy.

However, analysts are now downgrading their economic growth forecasts for China for the rest of the year.

Several major banks have cut their 2023 gross domestic product (GDP) growth forecasts after May industrial output and retail sales data missed forecasts and indicated that Beijing will need to take further steps to shore up a shaky post-COVID recovery.

The pandemic is unlikely to be the last public health crisis the world faces, Li said, adding that it will be over and visible and invisible barriers will disappear.

The trend of globalisation remains intact despite some setbacks, said the Chinese premier, reiterating a key theme of his since taking up his post that China remains open for business and welcomes foreign investors.

Effective communications and exchanges and vital and countries should strengthen dialogue and communications to avoid misunderstanding, he said.