Following the abandonment of its economically constraining zero-COVID policies, China’s economy is widely expected to rebound in 2023. To that end, there was some degree of surprise that China’s government cut its official growth target in 2023 to a multi-decade low. A broad range of factors could explain this modest target – from a faster than expected recovery or a desire to re-establish credibility to a greater appreciation of longer-term challenges.

For further details, please see the China Economic Update (March 2023)