China's strong economic performance during Spring Festival holiday heralds bright prospects

People visit a forest park in Shuyang county, Suqian, east China's Jiangsu province, Jan. 21, 2023. [People's Daily Online/Tang Yifang]

The strong economic vitality shown in China during the Chinese New Year holiday heralded a rebound of the Chinese economy in 2023.

The country will keep injecting confidence and impetus into the stable progress and recovery of the world economy.

This year's Chinese New Year, or Spring Festival, was the first one after China optimized its COVID-19 response. It attracted high attention from the international media. The country's recovering tourism sector, rising box office, booming catering industry, and busy travel rush, in the eyes of foreign media outlets, all indicated the energy and vitality of consumption as well as strong impetus of economic recovery.

During the Chinese New Year holiday, about 226 million railway, road, waterway and air passenger trips were made in China. The country measured about 308 million domestic tourist visits, up 23.1 percent year on year, with its domestic tourism revenue increasing 30 percent from a year ago to hit 375.84 billion yuan ($55.4 billion). The holiday box office sold 129 million tickets totaling 6.7 billion yuan. Besides, sales revenue of China's consumption-related sectors rose 12.2 percent from the same holiday period in 2022 and 12.4 percent from that in 2019.

The remarkable performance fully indicated the resilience, potential and vitality of the Chinese economy. A foreign research institution said the country's demand is being released as people swarm to tourist sites, restaurants and hotels. International public opinion holds that China is now well prepared to speed up its economy.

Such energy reinforced the international community's confidence in the country's economic prospects.

Tourists visit the Hainan Museum, south China's Hainan province, Jan. 22, 2023. [People's Daily Online/Su Bikun]

Recently, many international institutions and investment banks have lifted their forecasts on China's economic growth in 2023, claiming that the country's faster growth will forcefully drive global recovery.

The United Nations, in its report World Economic Situation and Prospects 2023, projected that world output growth will decelerate to 1.9 percent this year, but China's economic growth will accelerate as a result of the country's efforts to optimize COVID-19 response and adopt favorable economic policies. The report said China's economic recovery will assist the growth of the whole region.

The latest Global Fund Manager Survey by the Bank of America said growth expectations for China are at a 17-year high. Financial Times reported that investors are piling into emerging market stocks and bonds at a near-record rate and most of them are investing in China.

International Monetary Fund Managing Director Kristalina Georgieva said China's successful economic reopening is very likely the single most important factor for global growth in 2023.

China's economic energy strengthened the resilience and dynamics for global recovery and development. As China optimized its COVID-19 response and resumed outbound tourism for Chinese citizens, many Chinese people went abroad for vacation, which brought important benefits to local tourism and even economic recovery of the destinations.

With local traditional songs and dances, Indonesia's famed resort island of Bali welcomed back the first batch of Chinese tourists by charter flight after the Chinese government optimized its COVID-19 rules, and Maldives welcomed the first direct flight from China with a water cannon salute at the Velana International Airport.

A firework show is performed in Huzhou, east China's Zhejiang province, Jan. 27, 2023. [People's Daily Online/Zhou Wei]

Besides, officials of Thailand, the Philippines, and Cambodia received Chinese tourists at airports in person, and the Jungfrau ski region in Switzerland made a rabbit ice sculpture for Chinese tourists and decorated cableway stations with Chinese New Year ornaments and red lanterns.

Reuters said Chinese tourists have always been a pillar of global retail and tourism industries, and their comeback will no doubt revive the global tourism that had been severely impacted.

According to a recent report issued by the ASEAN+3 Macroeconomic Research Office, the rising number of Chinese outbound tourists is expected to boost economic growth in the region.

Credit rating agency Fitch Ratings also believes that the resumption of outbound tourism in China will revitalize the growth prospects for economies that enjoy developed tourism.

As China has entered a new phase of COVID-19 response and accelerated the resumption of work and life, it will see strengthened internal forces driving economic growth and constant releasing of dividends from deepening reform and opening up.

The Chinese economy will continue demonstrating strong resilience, enormous potential and huge vitality, and will inject confidence and impetus into the stable progress and recovery of the world economy, despite the complex and unpredictable international situation and bigger downward pressure on global economy.

The views don't necessarily reflect those of Qiushi Journal.