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China Aims for 5% GDP Growth in 2023, Says Government Official

China's economy is projected to expand by approximately 5% in 2023, according to a statement made by Han Wenxiu, deputy director of the country's central financial and economic affairs commission, reports Reuters. This growth is anticipated to contribute nearly 30% to global economic expansion.

Speaking at an economic conference on Saturday, Han emphasized the need to prioritize consumption growth, framing it as a long-term strategic imperative for sustained economic development. His remarks come on the heels of Thursday's announcement that China will implement a more accommodative monetary policy and increase debt issuance to safeguard economic stability amid escalating trade tensions with the United States under the Trump administration.

Government advisors have reportedly recommended maintaining a growth target of around 5% for next year. However, while the stock market exhibits optimism regarding a resurgence in Chinese consumption, bond investors remain cautious, indicating concerns about the economy's ongoing challenges.

Han stressed that a proactive fiscal policy coupled with a moderately loose monetary policy will be instrumental in mitigating economic uncertainties and facilitating the achievement of annual targets.

He further indicated that China's foreign exchange reserves likely exceeded $3.2 trillion this year, while employment and prices are projected to remain stable.