Economy
China says it will implement policies to support 2023 economic growth
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Office towers in the Lujiazui financial district of Shanghai, China, on Oct. 17.ALY SONG/Reuters
China will seize the time window to implement policy measures to support the economy, aiming for an improvement in growth in early 2023, state media on Wednesday quoted the cabinet as saying.
The government in recent months has rolled out a flurry of policy measures to support growth, focusing on infrastructure spending and limited support for consumers, while loosening financing curbs to rescue the property sector.
“There is still room for these policies and measures to release their effects,” state media quoted the cabinet as saying after a regular meeting.
“Making good efforts will also help stabilize growth next year. We should seize the time window and pay close attention to the implementation of policies.”
Last week, Chinese leaders pledged to step up policy adjustment to support the slowing economy, to cushion the impact on businesses and consumers of a surge in COVID-19 infections at a time when a weakening global economy is hurting exports.
The World Bank has cut its China growth outlook for this year and next, citing the impact of the abrupt loosening of strict COVID-19 containment measures and persistent property sector weakness.
China will better balance its COVID-prevention measures and efforts to promote economic and social development, seeking to lay a good foundation for growth in 2023, the cabinet was quoted as saying.
The government will “keep the economic operation within a reasonable range, promote further stability and improvement of the economy, and achieve a good start for next year,” the cabinet said.
China will speed up construction of major investment projects and equipment upgrading, the cabinet said, adding that China will meet people’s demand for COVID-prevention materials and drugs and reasonably import urgently needed goods.
The Canadian economy grew by 0.1 per cent in November as higher interest rates began to slow spending toward the end of the year.
Service sector expanded even as goods producing industries contracted
The Canadian economy grew by 0.1 per cent in November as higher interest rates began to slow spending toward the end of the year.
Statistics Canada’s preliminary estimate for December indicates the economy stayed flat, suggesting the economy grew at an annualized rate of 1.6 per cent in the fourth quarter.
The economy grew at an annualized rate of 2.9 per cent in the third quarter.
In November, growth in real domestic product was driven by the public sector, transportation and warehousing and finance and insurance.
Meanwhile, construction, retail and accommodation and food services contracted.
Statistics Canada says economic growth for 2022 was an estimated 3.8 per cent.
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Canadian economy grew 0.1% in November, likely was unchanged in December – The Globe and Mail
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People shop for produce at the Granville Island Market, in Vancouver, on July 20, 2022.DARRYL DYCK/The Canadian Press
Canada’s economy expanded slightly in November, matching expectations, and likely stalled in December, data showed on Tuesday, broadly in line with the Bank of Canada’s expectations for the economy to flatline during the first half of this year.
November gross domestic product (GDP) rose 0.1 per cent in November, Statistics Canada said, and was likely flat in December, according to a preliminary estimate.
“The flash estimate for December suggested that there was little if any growth during the final month of the year. That aligns with our view that the economy is likely stalling,” said Royce Mendes, head of macro strategy at Desjardins.
In December, gains in the retail, utilities, and public sectors were offset by decreases in sectors including wholesale, finance and insurance, Statscan said.
Annualized gross domestic product likely gained 1.6 per cent in the fourth quarter, above the Bank of Canada’s 1.3 per cent forecast. If the flash estimate proves correct, the economy expanded 3.8 per cent in 2022 from the previous year, above the central bank’s 3.6 per cent forecast.
“Today’s data show that the Canadian economy continues to cool, but not as yet shift into reverse, in the face of rising interest rates,” Andrew Grantham, senior economist at CIBC Capital Markets, said in a note.
The Canadian central bank has raised its key interest rate at a record pace of 425 basis points in 10 months to cool the economy and bring inflation down. After the latest rate hike last week, the Bank of Canada said it would likely hold off on further increases.
Last week, the central bank said the economy would stall and could tip into a mild recession during the first half of this year.
“The overriding message is that the economy is just managing to keep its head above water, which squarely fits with the Bank of Canada’s view,” said Doug Porter, chief economist at BMO Capital Markets.
Canada’s service-producing sector grew 0.2 per cent in November, buoyed by a third straight month of gains in transportation and warehousing. The goods-producing sector contracted 0.1 per cent in November, dragged down by declines in the construction and manufacturing industries.
The Canadian dollar was trading 0.2 per cent lower at 1.3405 to the greenback, or 74.60 U.S. cents, after clawing back some of its earlier decline.
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