A view of Beijing's CBD area File photo:VCG

Many foreign institutions are positive about China's economic prospects in 2024. They predict that consumption and exports will continue to improve and investment will rise, which will jointly contribute to the economic recovery.

This year, the central government may set a GDP growth goal of "about 5 percent," which is necessary for stabilizing expectations, Yu Xiangrong, Citi's chief economist for China, said in a note sent to the Global Times.

The target could be achieved with appropriate policies, Yu said, expecting a more expansionary policy mix this year, with fiscal and quasi-fiscal policies to take the lead while monetary policy plays a coordinating role.

China is set to announce its 2023 GDP growth rate and other macroeconomic indicators on Wednesday, and the annual GDP target for 2024 will be set during the "two sessions" in March.

China's GDP grew by 5.2 percent year-on-year in the first three quarters of 2023, the strongest performance among major economies.

UBS economists led by Wang Tao wrote in a note sent to the Global Times recently said that the consumption and services sectors will extend their post-COVID-19 recovery in 2024, with the gradual release of excess savings making some contribution in this regard.

The economists forecast that US economic growth will slow down in 2024 but the global tech sector will likely bottom out. As a result, China's export growth will pick up this year, with net exports expected to drive the country's economic growth.

Wang Zonghao, head of China equity strategy research at UBS, said in a note sent to the media that he is positive about the prospects of A-shares of companies that achieve earnings per share growth of at least 10 percent and offer low relative valuations, among other factors.

In 2023, at least 81 foreign institutional investors reportedly received the status of qualified foreign institutional investors (QFIIs) and Renminbi QFIIs in China, a vote of confidence in the country's promising long-term economic outlook.

Setting the tone for China's economic work in 2024, the annual Central Economic Work Conference held in Beijing in December pointed out that it is necessary to adhere to the general principle of seeking progress while maintaining stability, promoting stability through progress and establishing the new before abolishing the old.

According to the key conference, China will explore new growth points and emerging industries, while accelerating the upgrading of traditional industries with new technologies.

More importantly, the central government may step up financial support in these fields, Wen Bin, chief economist at China Minsheng Bank, told the Global Times.

He said that investment will focus on key livelihood sectors that meet consumers' demand in order to promote sound circulation.

"After experiencing a post-pandemic economic recovery characterized by... twists and turns in 2023, China's economic growth rate is expected to return to its potential level in 2024," Wen said. He expects that consumption will grow by about 5.5 percent this year, investment at about 5 percent and exports at about 3 percent.