Interview: China expected to embrace strong growth in second half of year, says Singaporean economist

Workers assemble an automobile at the production line of Weichai New Energy Commercial Vehicle Co., Ltd. in Wendeng District of Weihai City, east China's Shandong Province, July 21, 2023. (Xinhua/Guo Xulei)

With substantial domestic demand, sophisticated production networks and supply chains, the emerging industries, represented by new energy vehicles and advances in digitalization, will add more vitality to China's economy.

SINGAPORE, July 22 (Xinhua) -- The Chinese economy is expected to return to solid growth and strengthen in the second half of this year and into next year, a Singaporean economist told Xinhua in a recent interview.

The investment in China's high-tech manufacturing and services has continued to increase, reflecting confidence in the future of strategic emerging industries, said Foo Suan Yong, senior economist at Singapore-based ASEAN+3 Macroeconomic Research Office.

According to Foo, the Chinese economy is experiencing significant structural changes that will unleash new momentum.

He noted that with substantial domestic demand, sophisticated production networks and supply chains, the emerging industries, represented by new energy vehicles and advances in digitalization, will add more vitality to China's economy.

"I think China can strengthen the resilience of this economy, and its growth prospects are bright for the long term," Foo said.

The economist noted that China took time to recover from the pandemic, but he believes that the world's second-largest economy is now experiencing restorative growth. The first quarter saw a strong rebound, and the second quarter is on track for sustained recovery.

People visit Jianchang ancient city during the Spring Festival holiday in Xichang, southwest China's Sichuan Province, on Jan. 27, 2023. (Xinhua/Li Jieyi)

"China's economic performance in the first half of this year has been quite creditable with several signs of strength," Foo said.

"We expect consumption to be the main driver of Chinese economic growth this year, and investment is expected to pick up its role next year," he added.

As to multiple challenges, such as soaring inflation, Foo said that the key is a fair and open system for countries to participate in cross-border production and trade that benefit both developed and emerging economies.

Various uncertainties in the global economy have exposed Southeast Asian countries to challenges related to expanding employment, supporting livelihoods and maintaining growth.

Under such circumstances, deepening regional integration will enable Southeast Asia and China to share development opportunities and lay a foundation for more sustained and high-quality development, Foo said.