Chinese economic powerhouses set less ambitious GDP goals for 2023
- Guangdong and Zhejiang provinces both predict their economic growths will be ‘above 5 per cent’ this year, after falling well short of last year’s targets amid zero-Covid
- As China looks to bounce back from challenging 2022, authorities of the manufacturing hubs vow to step up support for private sector and create jobs
With the country as a whole setting out to heal its Covid-ravaged economy after a difficult year, two of China’s economic powerhouses have set less ambitious targets for their economies in 2023 while still vowing to create jobs and support the private sector.
The provinces of Guangdong and Zhejiang – big manufacturing hubs where private firms are hallmarks of the local economies – both put their growth targets at “above 5 per cent” for this year after missing last year’s goals due to China’s hardline zero-Covid policy, according to the two provinces’ parliamentary meetings on Thursday.
As export hubs and major engines powering China’s economy, their gross domestic product (GDP) growth targets could help shed light on this year’s national economic growth goal, which the central government will announce during the national legislative gatherings in March.
“The [Zhejiang] government will exhaust all measures to push for export growth and work with enterprises in expanding external markets and securing more orders,” provincial authorities said in their report on Thursday.
They projected that Zhejiang’s GDP, which accounts for about 7 per cent of the national economy, grew by 3 per cent last year – or half of the 6 per cent goal that it had set for last year.
“We plan to introduce a new batch of billion-dollar-level programmes to attract foreign investment,” Guangdong authorities vowed on Thursday, adding that the security and resiliency of industrial and supply chains will be enhanced. “We will unveil guidelines to promote private economic development … We will support micro, small and medium-sized companies.
“The private economy is the main force supporting Guangdong’s economy. Local governments at all levels should proactively address difficulties for private companies and boost their confidence.”
And while analysts expect that the nation still has a bumpy road ahead of it amid the transition to living with Covid, policymakers are still expected to set another GDP growth target of around 5 per cent for 2023.
Both Wang Weizhong, governor of Guangdong, and Wang Hao, governor of Zhejiang, said in their work reports to the regional People’s Congress on Thursday that their 2022 growths did not come easily. But looking forward, they vowed to restore exports, consolidate their footholds in hi-tech and supply chains, and revitalise confidence in their private sectors.
Wang Weizhong said his province will “actively promote the construction of the Greater Bay Area”, while working more closely with Hong Kong and Macau in their development strategies.
He said Guangdong will “join hands with Hong Kong and Macau to connect global high-end innovative talent”, while also striving to make it easier for talent to live in one of those areas while working in another.
Wang Weizhong also said Guangdong is aiming to consolidate the strengthening of hi-tech, manufacturing and exports, and will promote the relocation of industries from the Pearl River Delta region to less-developed parts of the province.