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China's Q1 growth helps restart global economy, says expert

Xinhua | Updated: 2023-04-27 17:54
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A view of the Huangpu River in Shanghai. [Photo/VCG]

BUDAPEST -- China's economic growth in the first quarter of 2023 is faster than expected and will help to restart the global economy, president of the Hungarian-Chinese Chamber of Economy has said.

"China reopened before the Chinese New Year ... and the consequence of this is the acceleration and economic development that no one expected," said Erno Peto in an interview with Xinhua during the China-Central and Eastern European countries industrial cooperation forum held in Budapest.

China has achieved a notable growth rate of 4.5 percent year-on-year in the first quarter, beating previous forecasts by many institutions. The country's optimized COVID-19 prevention measures are credited to this growth, said the expert.

According to Peto, the 4.5 percent growth of China will act as a catalyst for the economic development of many nations in Europe. China is one of the most important trade partners of the European Union, "if China's gross domestic product is 1 percent higher than 4.5 percent, it will generate half a percent of GDP growth in the European economy."

China's economic momentum will thus contribute to relaunching the economy on a global scale, Peto said. "I believe that China will restart the world economy."

Peto indicated that the faster-than-expected growth in the first quarter was just the beginning.

"At the Davos Forum, various economic macro analysts estimated the growth of China's GDP in 2023 at around 4.5-5 percent, given the data of the first quarter. This figure had to be modified, and today the annual GDP growth is estimated at around 5.6-5.8 percent," he said.

His view was echoed by many, including the International Monetary Fund, which projected an exceed-5-percent growth for China in 2023.

Peto was convinced that China's growth will give impetus to the region of Central and Eastern Europe, in which Hungary could play a special role.

He highlighted Hungary's potential as a logistics hub, financial center and platform for businesses in Central Europe and the EU.

"The expansion of China's economy holds great significance for the global economy, and Hungary has a unique position to contribute to Central Europe and the EU," he said.

Peto emphasized that in the present interconnected global economy, all parties rely on each other. Therefore, promoting a healthy and mutually beneficial economic partnership is essential for success.

"Everyone is dependent on the other," he said.

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