Foreign economists highlight encouraging data on Chinese economy

This aerial panoramic photo taken on Jan. 10, 2023 shows a view of Lujiazui area in the China (Shanghai) Pilot Free Trade Zone in east China's Shanghai. (Xinhua/Fang Zhe)

BEIJING, March 15 (Xinhua) -- Economists of multiple foreign financial institutions said recent encouraging data from warming inflation to vibrant foreign trade indicate that the Chinese economy continued to gather steam and maintained its upward trend at the beginning of the year.

China's consumer price index (CPI) rose 0.7 percent year on year in February, reversing a 0.8 percent decline in January, and the core CPI deducting food and energy prices went up 1.2 percent year on year in February, marking the largest increase in two years, according to the National Bureau of Statistics.

Nomura research analysts believe the CPI inflation is well above market expectations with the robust release of pent-up consumption demand during the Spring Festival holiday, reflected in surging sales of air tickets, rental vehicle services, cinema tickets and live performance events.

UBS economist Wang Tao predicted China will see a higher CPI growth rate this year than that of 2023 with a mild price recovery.

Moreover, the country's foreign trade in goods gained 8.7 percent to hit a historical high of 6.61 trillion yuan (about 931 billion U.S. dollars) in the first two months, data from the General Administration of Customs showed.

Strong exports to emerging markets drove up the country's trade growth in the January-February period, according to Nomura.

Economists expressed optimism over China's economic outlook as this year's government work report stressed efforts to promote high-quality development.

Wang said the Chinese government highlighted the ongoing structural changes and outlined structural policies to facilitate the transition, such as policies on developing new quality productive forces.

Liu Jing, chief economist for Greater China at HSBC, said China can deliver its growth target of around 5 percent this year.

An array of favorable factors, including a stabilizing property market, recovering consumer sentiments, stronger manufacturing investments driven by massive equipment upgrades, and fiscal and monetary measures, will help promote a steady recovery of the economy, Liu said.