People shop at a shopping mall in Changchun, northeast China's Jilin Province, Jan. 23, 2023. Photo: Xinhua

An article by Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, on major issues pertaining to the country's current economic work, will be published by the Qiushi Journal, a flagship magazine of the CPC Central Committee, on Thursday, the Xinhua News Agency reported on Wednesday. 

The article is part of an important speech Xi delivered at the annual Central Economic Work Conference on December 15, 2022. Publishing the article in the magazine, an important ideological and theoretical medium for guiding the work of the entire Party and the country, underscored the importance for tackling economic challenges this year and beyond, Chinese economists said. 

Titled "Several Major Issues in Current Economic Work," the article noted a multitude of tasks in the nation's economic work in 2023 and stressed efforts in five areas: expanding domestic demand; accelerating the building of a modern industrial system; working unswervingly to both develop the public sector and support the non-public sector; boosting foreign investment, and defusing major economic and financial risks, according to the website of Qiushi Journal. 

In particular, the article called for prioritizing the recovery and expansion of consumption. It also stressed lifting overall social investment through government investment and policies, stabilizing exports to developed countries and expanding exports to emerging market economies.  

"These issues and relevant measures are crucial for the economic recovery this year and efforts to achieve our yearly economic goals," Hu Qimu, deputy secretary general of digital-real economies integration forum 50, told the Global Times on Wednesday, adding that the article sets the tone for this year's Government Work Report.

The Government Work Report, to be released at the annual Two Sessions in early March, contains social and economic development goals as well as major policy measures to achieve them. This year, amid growing signs of a fast recovery in the Chinese economy, analysts expect higher economic targets and more focus on boosting domestic demand. 

"The top leadership's emphasis on internal circulation and domestic demand are two long-term development strategies, while in the short term, it aims to cope with possible external shocks that may exceed expectations," Hu said, noting external risks, including the US' interest rate hikes and tech decoupling attempts. "The shrinking of external demand needs to be hedged by expanding home consumption."

The article in Qiushi Journal also called for specific efforts to boost domestic demand, increase urban and rural incomes through multiple channels, and encourage more private capital to participate in the construction of key national projects.

"The emphasis on expanding domestic demand highlights the core of economic work in 2023," Tian Yun, a veteran economist, told the Global Times on Wednesday, adding that boosting consumption is the first step in lifting domestic demand. Home consumption will make the biggest contribution to GDP growth this year. "That is a fundamental indicator for whether the annual economic growth target is met." 

While China won't announce its GDP growth target until the Two Sessions in March, various domestic and global institutions have predicted a much faster growth pace for the Chinese economy in 2023. The IMF, for example, has projected China's economy will grow by 5.2 percent in 2023, compared with 2.9 percent growth estimated for the global economy.

In an interview with the Global Times, Steven Alan Barnett, senior IMF resident representative in China, said that a key reason for the rebound in China's economic growth this year will be an increase in consumer spending. "We project that household consumption will contribute about 50 percent of GDP growth this year. This is a welcome development," Barnett said. 

The article in Qiushi called for stabilizing exports to developed countries and expanding exports to emerging market economies. It also called for actively expanding imports of advanced technology, important equipment, energy resources and other products.

"A focus will also be expanding cooperation with countries along the Belt and Road Initiative route, especially developing countries," Tian said. 

Such efforts and China's overall economic recovery will help boost global growth as well as growth in other economies, analysts said. 

"In addition to directly contributing to global growth, China generates spillovers to other economies. When China grows faster, it imports more from other countries. This benefits China's trading partners," Barnett said.