Davos — China’s gross domestic product (GDP) is expected to grow 5 percent this year as the country has significantly recovered from COVID-19, and people are rebuilding their confidence, Xiaoyan Zhang, a renowned economist from China’s Tsinghua University, told TRENDS.
Zhang shared her insights about China’s economic outlook for the coming year on the sidelines of the World Economic Forum 2024 in Davos.
She provided valuable insights into the ever-changing dynamics of one of the world’s largest economies, covering topics such as the recovery after COVID-19, the significance of technology, and the evolving nature of international trade.
Excerpts:
Q: What’s your forecast for 2024 in terms of China’s economic performance?
A: We’re forecasting close to a 5 percent GDP growth. China has significantly recovered from COVID-19, and people are rebuilding their confidence. People have started to spend more, and there are a lot of innovations happening in China; it will take a lot of work to recover, but we’re confident.
Q: In terms of the Chinese economy, what are the engines of growth for this year and 2025?
A: Investment in technology. In 2024, as uncertainties resolve, investments will return to technology, which will become the new economic driver.
Q: What about other sectors, such as manufacturing?
A: That’s also picking up. In 2023, China’s trade grew by 1.6 percent, but many changes are happening in this sector. The quality of products is improving, and we’re also moving from the lower end of manufacturing to the high end.
Regarding the countries we’re exporting to, we’re shifting our focus from the West towards the Middle East, Southeast Asia, and other parts of the globe. That is an exciting change, in my opinion.
Q: In terms of investment, are you investing more in the Middle East?
A: I think so. We aim to collaborate with as many partners as possible. I have recently noticed a lot of interest among Chinese students in attending universities in Dubai and Abu Dhabi. It’s an exciting change, and I am very interested in this area.