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Bank of China releases Q2 2023 Economic and Financial Outlook Report
CGTN
Bank of China head office at No.1 Fuxingmennei Street, Beijing, China, September 20, 2022. /CFP
Bank of China head office at No.1 Fuxingmennei Street, Beijing, China, September 20, 2022. /CFP

Bank of China head office at No.1 Fuxingmennei Street, Beijing, China, September 20, 2022. /CFP

Bank of China (BOC) Research Institute released the Economic and Financial Outlook Report for the Second Quarter of 2023 on Monday. The report reviewed the global and China's economic and financial performance as well as the global banking performance in the first quarter of 2023. It also provided an outlook on the economic and financial situations, and the global banking trends in the second quarter of 2023.

In terms of global economic and financial situations, the report noted that in the first quarter of 2023, the global economic trend was better than expected, the economic downturn in Europe and the U.S. slowed down, and the global supply chain tension eased. As the U.S. Federal Reserve and European Central Bank continued to implement tight monetary policies, the liquidity of the U.S. dollar further tightened, and the prices of risky assets shrank sharply.

Looking forward to the second quarter, the structural contradictions and discrepancies of the global economy in consumption, employment and inflation will become more obvious, which will affect global economic growth.

In terms of China's economic and financial situation, the report noted that in the first quarter of 2023, as the impact of the pandemic subsided and the policy of stabilizing the economy was deployed ahead, China's economy continued to recover and GDP is expected to grow by about 4.1 percent in the first quarter.

The report predicted that in the second quarter, China's economy will experience a comprehensive recovery. Consumption is expected to increase steadily, investment in infrastructure and manufacturing will grow rapidly, investment in real estate will gradually stabilize, and decline in exports may continue to narrow.

In terms of global banking developments, the report held that the global economy has faced many challenges since the year began. The continuous sharp interest rate hikes in major economies have led to financial system turmoil, increased operating pressures on the banking industry and shrunken asset scale. Profit growth was affected to a certain extent, with capital replenishment continuously blocked. Relatively speaking, the operating environment of China's banking industry is generally improving alongside a stronger momentum of economic recovery.

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