Consumption will lead China's economic recovery

Significance

This was the lowest since 1976, excluding 2.2% in 2020, when the COVID-19 pandemic started. In the last quarter of 2022, GDP expanded by 2.9% year-on-year, slowing from 3.9% the previous quarter. In quarter-on-quarter terms, growth was flat as the country grappled with a surge in COVID-19 cases.

Impacts

• GDP will expand by 5.4% in 2023, FrontierView forecasts.
• Companies in consumer-related sectors will see the largest improvement in revenues in 2023 as pent-up domestic demand is released.
• Firms orientated towards the domestic market will generally perform better than exporters.
• Healthcare and pharmaceuticals will have another strong year as people seek COVID-19-related treatments.