Why Standard Chartered Sees Above Consensus Growth Forecast For China

On CNBC, Shuang Ding of Standard Chartered said China’s economy is expected to expand 5.8% in 2023.

"We have above consensus forecast" for China for the next year, Ding said. The country’s government is likely to take the pro-growth stance this year after falling short of the 2022 growth projections, he added.

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At China's upcoming central economic work conference, the country’s government may set a growth forecast of more than 5% to "bring the growth back to its potential level," Ding mentioned.

He expects consumption, after the significant relaxation of covid measures in the second quarter, if not earlier, to become the "key growth driver" for China.

The country’s service sector is currently "running way below the pre-pandemic level," he added. There is significant pent-up demand in the economy and the household saving ratio has "increased sharply" during the pandemic period, and both of these factors are expected to help "unleash" the potential for the service sector.

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