China Sets Lower Growth Expectations

China has set a modest 5% economic growth target for 2023, which may dampen commodity markets that were expecting a surge in demand from the world’s largest buyer of natural resources.

Beijing will likely stimulate critical parts of the economy, particularly by boosting construction and infrastructure, while trying to lift consumer confidence and spending.

However, an acceleration of economic growth to 5% implies that more commodities will be required, and probably to the extent that China’s imports will return to positive territory, with signs of a pick-up in demand already visible, particularly for iron ore.