PWC - China Economy, Q4 2022

The Chinese economy experienced moderate growth of 2.9% YoY in Q4 2022 due to the persisting impacts of COVID-19 control policies implemented earlier. However, China's GDP grew at a compounded annual rate of 4.5% over the past three years. This has affected the market value of companies and the wealth of entrepreneurs with the total wealth of those on Forbes' 2022 China's 100 Richest list falling by almost 40%. While the job market outlook for 2023 is expected to improve, youth unemployment may remain high as more college graduates enter the workforce. Additionally, China's aging population continues to grow while the working-age population declines. The global economic growth is likely to slow down to 2.9% in 2023, as per IMF's forecast, which may affect the demand for Chinese goods and add pressure to China's import and export sector. Furthermore, the conflict between Russia and Ukraine and rising interest rates from the US Federal Reserve and European Central Bank may exert a negative impact on China's economic recovery.