The Chinese economy is struggling to achieve a convincing recovery. Today, even Chinese leader Xi Jinping warns of the many demanding situations that the country’s economy will face in 2023.

“Some businesses have faced difficult times. Other people have had difficulties finding jobs and meeting their fundamental needs,” Xi said in a speech to inaugurate the year 2024 on Sunday, according to an official transcript. He also described demanding situations as “headwinds. ”

This is the first time Xi has spoken about economic woes since he began delivering New Year’s messages in 2013, according to CNN.

Despite his rare and outspoken acknowledgment of China’s economic woes, Xi touted the country’s victories for most of his speech, praising the progress of its sustainable industries and the decline in domestic tourism.

China’s economy grew 3. 0% in 2022, one of its worst effects in part of a century, as the country grappled with intense COVID-era restrictions and an asset crisis that stretched into 2023. Beijing has tried to help to the Chinese economy by introducing measured measures. . stimulus measures, but analysts consider that they are not enough.

Xi’s speech came hours after an official survey of China’s manufacturers showed that factory activity contracted for the third straight month, with the country’s Purchasing Managers’ Index hitting 49 in December — a six-month low.

Economists at Nomura wrote in a note on Tuesday that China’s underlying expansion momentum would likely remain “lackluster. “

“Despite a series of recently announced stimulus measures, it is still too early to bottom out, and a further economic slowdown is possible in spring 2024 due to a faltering asset sector, a decline in pent-up demands and falling external demand, overcapacity in some ‘green’ sectors and persistent geopolitical headwinds,” Nomura economists wrote.

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