Calculating "Spillover" Effect from China

The direction of China's economic policy has become the attention of the world, including Indonesia. It is important to anticipate the "spillover" effect from China's economic recovery.

KOMPAS/AGNES THEODORA

The Great Hall of the People Building or The Great Hall of China in Beijing, China, was attended by local and foreign journalists attending to cover the annual parliament session of the National People's Congress and the plenary meeting of China's political advisory body, the Chinese People's Political Consultative Conference, Saturday (4/3 /2023).

JAKARTA, KOMPAS — After experiencing intense pressure due to the pandemic and the strict zero Covid-19 policy, China has set a cautious economic target this year. At the opening of the plenary session of the National People's Congress, on Sunday (5/3/2023), China announced a moderate economic growth target of around 5 percent amidst many structural challenges that need to be answered.

The figure is below China's economic growth target of 5.5 percent in 2022, but still shows improvement. As a result of strict Covid-19 restrictions, China's economy grew only 3 percent last year, one of the lowest in the history of the country's modern civilization.