MNI China Press Digest April 19: GDP, Deficit, Consumption

Highlights from Chinese press reports on Wednesday:

• China’s GDP will grow between 5.5-8.0% in 2023 should Q1 trends continue, according to the 21st Century Business Herald. Local analysts said the economy shows strength, but the rebound is uneven. The economy needs policy support to boost private investment, which lags behind consumption and total aggregate demand remains insufficient, the Herald said. Recent data suggests exports will grow between 0-5% this year, with analysts unsure if March’s strong export data can be sustained. The government should prioritise youth employment and boosting income levels to ensure a sustained increase in aggregate demand, the Herald added.
• China’s fiscal revenue will grow faster in Q2 as the economic rebound gathers momentum, according to Xue Qian, deputy director at the National Treasury Payment Center. Recent data from the Ministry of Finance showed public expenditure for Q1 was up 6.8% y/y, while revenues gained 0.5% y/y. Other experts expect special-bond issuance to accelerate in Q2 and Q3, as construction enters peak season. Q1 expenditure grew quickly as fiscal policy was active and now the government should stimulate growth through releasing institutional dividends from supply side structural reforms, said Tian Lihui, dean at the Financial Development Research Institute of Nankai University. (Source: Securities Daily)
• Beijing’s local government will continue energy vehicle subsidies to boost consumption this year, according to Yicai. Authorities will encourage financial firms to supply loans for car purchasing and support the development of the second hand market. China’s capital will prioritise cultural events and brand development, with more funding for activities including China International Fashion Week and the Beijing Film Festival. Local leaders also identified five city blocks for night time economic development. (Source: Yicai)