Data from the National Bureau of Statistics on Wednesday (17 January) showed GDP in the world’s second largest economy expanded 5.2% in 2023, compared to an official target of around 5%, the lowest benchmark in decades.

The fourth-quarter GDP showed a 1% increase compared to the third quarter, while the quarter-on-quarter growth rate was lower than the revised 1.5% recorded in the third quarter.

What happened to China in 2023?

In 2022, China’s economy saw modest 3% growth due to prolonged Covid-19 restrictions tied to its zero-covid policy. After lifting these measures at the end of the year, Beijing set a growth target of “around 5%” for 2023.

Speaking at the World Economic Forum on Tuesday (16 January), Chinese premier Li Qiang said his country had achieved its economic target without resorting to “massive stimulus”.

He said China had “good and solid fundamentals in its long-term development” and that Beijing would “adhere to its basic national policy of opening up to the outside world”. 

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“Choosing investment in the Chinese market is not a risk, but an opportunity,” he added.

Official statistics also revealed that the property sector, entangled in a three-year debt crisis, continued to face challenges in 2023. 

Investment in property development saw a 9.6% decline last year compared to 2022, while new home prices experienced a 0.4% in December from the previous month, marking the steepest fall since February 2015.