ANZ: Urbanisation Push Will Lift Growth In 2023

ANZ note that “President Xi Jinping’s recent actions suggest that the long-standing needs of 300 million new urban residents and 490 million peasants are currently on his radar.”

• “These needs span housing, education and medical care, to name a few. Or statistically, each 1ppt increase in the urbanisation rate will also add 1.8ppt to China’s overall consumption.”
• “China’s continued urbanisation push can thus support a relatively ambitious growth target of 5.5% growth target for 2023. We believe that policy measures on “hukou” urban household registration, affordable housing and rural construction initiatives will be scrutinised and tweaked in the Government Work Report for 2023.”