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China’s gross domestic product (GDP) is expected to grow 5.2 percent in 2023 and 5 percent in 2024, according to a report released at the International Financial Forum (IFF) on Saturday.

The global growth is projected to slow further this year at 3.1 percent, and is likely to remain weak at the same level in 2024, according to the IFF 2023 Global Finance and Development Report released during the IFF 20th Anniversary and Annual Meeting held in Guangzhou, south China’s Guangdong Province.

The report said that the monetary tightening cycle in most countries is likely to end by 2024. However, monetary and financial tightening are likely to continue and further depress demand growth and slow the global recovery.

It therefore forecast the global economy to grow by 3.1 percent in 2024, with developed economies growing by 1.3 percent and developing economies by 4.3 percent.

The global community should work together to address both short-and-longer-term challenges. Countries should pursue international cooperation and multilateralism in dealing with common challenges, including reducing poverty, protecting environment and mitigating climate change, resolving cross-country conflicts and reducing geopolitical tensions, said the report.

The International Finance Forum (IFF) is an independent, non-profit, non-governmental international organization founded in Beijing in October 2003, established by financial leaders from more than 20 countries and regions including China, the United States, the European Union, emerging countries as well as leaders of international organizations such as the United Nations, the World Bank and the International Monetary Fund

As the tastes of Chinese consumers move toward higher-quality and more diverse products and services, foreign companies are working to cater to their needs and tap further into the consumption potential of the vast market.

Consumption, a mainstay of the Chinese economy, has seen steady expansion this year, contributing 83.2 percent to GDP growth in the first three quarters, according to the National Bureau of Statistics.

In the first three quarters, the per capita consumption of services accounted for 46.1 percent of China’s total per capita spending of residents, a year-on-year increase of 2 percentage points, the bureau said.

The Chinese market is growing at the fastest pace globally, and its size comes at the top around the world, said Belinda Wong, chairwoman and CEO of Starbucks China.

This enables the company to move more swiftly to innovate its products and introduce various kinds of blended coffee products specifically targeting the tastes of Chinese consumers, Wong added.

The coffee giant launched the Starbucks Intenso Collection specifically for the Chinese market on Oct. 17. The new collection is served in small green cups and offers four flavors designed to cater to the different tastes of coffee enthusiasts.

Last month, Starbucks’ new coffee innovation park began operations in east China’s Jiangsu Province — a milestone achievement for the company’s business in China. The park made China the first market in Starbucks’ global network to complete a full-scale vertical integration “from bean to cup.”

It will enable Starbucks China to respond more quickly to the needs of its Chinese customers, allowing it to make bespoke blending and roasting plans to meet the ever-developing preferences of its customers, according to the company.

“We’re very proud of the investment we have been continuing to make in China,” Wong said, noting that the coffee giant’s investment in Kunshan, Jiangsu Province, and in Shenzhen, Guangdong Province, is nearing 440 million U.S. dollars.

The scale of China’s coffee industry grew from 165.1 billion yuan (about 23 billion U.S. dollars) in 2021 to 200.7 billion yuan in 2022, and it is expected to reach 369.3 billion yuan in 2025, according to a report published by domestic commercial data analysis firm CBNData and Shanghai Jiao Tong University in May.

Starbucks currently boasts a market footprint of over 6,500 branches across more than 250 Chinese cities, with 800 county-level markets across the country. Thanks to the growth potential of the Chinese market, Starbucks will remain committed to long-term development in the country, Wong said.

A travel boom during the recent Mid-Autumn Festival and National Day holiday period again pointed to Chinese consumers’ growing willingness to spend, with the growth of revenue from accommodation and catering services sustaining its robust momentum.

InterContinental Hotels Group (IHG), a leading multinational hospitality giant headquartered in the United Kingdom, saw its Greater China region revenue per available room surge 43.2 percent year on year in the third quarter of 2023.

Hotel development in the Greater China region has continued to improve since the beginning of the year amid the recovery of China’s culture and travel market, with the group achieving its highest number of signed projects in a single quarter since 2021, according to the report.

“China is a vibrant market growing at the fastest pace in the world for IHG,” said Lu Haiqing, chief corporate affairs and strategic relations officer of IHG Greater China.

Tailoring its offerings to traditional Chinese culture and popular aesthetics, the hotel giant introduced Hualuxe, a new brand designed exclusively for its Chinese customers, in 2012. As of the end of September 2023, the brand operates 20 hotels in China and 24 more are under construction, covering big cities and popular holiday destinations such as Beijing, Xiamen and Kunming.

China’s market potential has emerged from the overall consumption upgrade trend among Chinese people, and it has given the company more opportunities in the middle-end market. Holiday Inn Express, a middle-to-high-end hotel brand under IHG, was designed to target customers with constantly growing demand for quality hotel experiences.

To date, there are nearly 500 Holiday Inn Express hotels in operation or under construction across 31 provincial-level regions in the Greater China region.

The Chinese economy is improving, and its buoyed consumption capabilities have brought in customers for the tourism industry, Lu said, expressing strong confidence in the group’s future development in China, IHG’s second-largest market worldwide.

In the future, the group will continue to strengthen cooperation in China and serve its local customers in various respects, meeting demand and providing products to offer diversified travel experiences to the market, Lu said.

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