Economy set to pick up pace in 2024

China's economy is likely to pick up pace and grow steadily in 2024 after a bumpy recovery last year, propelled by the gradual increase in domestic demand and with more stimulus policies in the offing, officials and economists said on Wednesday.

As the broader economy is still facing pressures from a property downturn, lack of effective demand and risks associated with local government debts, economists said the country needs to set an annual GDP growth target of around 5 percent to boost business confidence, and the policy easing should focus on housing and fiscal measures.

Data from the National Bureau of Statistics showed on Wednesday that China's GDP expanded by 5.2 percent year-on-year in 2023 to 126.06 trillion yuan ($17.63 trillion), surpassing the country's preset annual growth target of around 5 percent.

In the fourth quarter of 2023, the Chinese economy grew 5.2 percent year-on-year, following a 4.9 percent growth in the third quarter.

"China's 5.2 percent growth rate is higher than the anticipated global growth rate of around 3 percent, outpacing many major economies," Kang Yi, head of the National Bureau of Statistics, said at a news conference in Beijing on Wednesday. "China is projected to have contributed more than 30 percent of global economic growth in 2023, making it a primary engine driving global growth."

Despite the challenges and difficulties ahead, Kang said that China possesses many advantages and enjoys several opportunities, which outweigh the challenges.

He said that China's economy is bound to see a steady recovery and improvement in 2024, given the continuing recovery trend, the continuous deepening of reforms and ample policy scope.

Louise Loo, lead economist at British think tank Oxford Economics, said: "There's plenty to be positive about in China's year-end reported numbers. The cyclical trough is likely behind us."

She added that industrial production is likely to accelerate on improved capacity utilization, higher industrial profits, and forward-looking restocking needs.

Industrial production is already showing signs of improvement, with China's value-added industrial output growing by 6.8 percent last month after a 6.6 percent growth in November.

She said that keeping up with the current growth momentum will require an ongoing and coordinated stimulus effort over the next few quarters.