China's Economy Achieves 5.2% Growth in 2023

In 2023, China's economy expanded by 5.2%, aligning with the government's target, despite facing many challenges. The growth, mirroring the same rate in the last quarter compared to the previous year, was described by the National Bureau of Statistics as a difficult achievement. This performance follows a modest 3% growth in 2022, heavily influenced by stringent COVID-19 policies.

The world’s second-largest economy, however, continues to face headwinds. A significant downturn in the property market has been a major concern, with the government attempting to control soaring debts and speculation in the sector. 

Additionally, China experienced its first export decline since 2016, exacerbating economic pressures. Its youth unemployment levels have also been at record-high levels.

Geopolitical tensions, particularly with the United States, and global efforts to diversify supply chains away from China, have further impacted the country's economic prospects. 

These are not China’s only challenges. Internal demographic shifts also pose long-term concerns. China's population saw a decrease for the second consecutive year in 2023, with a drop of 2.08 million to 1.409 billion. 

This decline was more significant than the 850,000 decrease in 2022 and marked the highest death rate since 1974. New births also fell by 5.7%, with a record-low birth rate of 6.39 births per 1,000 people.

The economic forecast remains uncertain as Beijing prepares to announce its 2024 growth target. The ongoing property crisis, record youth unemployment, and falling birth rates continue to challenge the nation's economic stability and growth trajectory.