China's economy beats target to grow 5.2% in 2023

The news: China says its economy grew 5.2% in 2023, beating its annual growth target, but new data shows the world's second-largest economy still has challenges ahead in its post-pandemic recovery.

The numbers: China's 2023 growth figure beat its 5% target and was a solid return to form after growing only 3% in 2022 when it was still feeling the pain of Covid-19 lockdowns and disruptions. Annualised industrial production figures also headed in the right direction, growing 6.8% in the year to December, up from a 6.6% figure in November. Domestic demand was less encouraging with retail sales growth coming in at 7.4%, undershooting expectations of 7.9% and shrinking from the 10.1% figure in the 12 months to November.

The context: China's post-COVID recovery has been hampered by weak demand at home and abroad, local government debt concerns and a liquidity crisis in its massive property sector, which accounts for about 25% of the national economy. On Wednesday, Chinese premier Li Qiang told the World Economic Forum in Davos that China was open for business, and called on world leaders to tackle barriers to competition and trade, Reuters reports.