Xi Jinping Acknowledges Economic Challenges as China Eyes Recovery in 2024

Chinese President Xi Jinping has publicly acknowledged the economic difficulties facing China, including hardships for businesses and job seekers, as well as a contraction in factory activity for the third consecutive month. Despite highlighting the country's achievements in his New Year's speech, Xi's comments come against the backdrop of a 3.0% economic growth in 2022, one of the lowest in decades, exacerbated by COVID restrictions and a lingering property crisis. Analysts from Nomura suggest that despite recent stimulus efforts, China's economy may face further challenges in the spring of 2024.