Analysts are forecasting continued growth for China’s economy in 2024, driven by a combination of deepening reforms and strategic investments in emerging industries. Experts have outlined six key strategies to maximize this growth potential, emphasizing the importance of both policy reforms and technological advancement.
According to a recent commentary in the Economic Daily, China is urged to deepen reforms in its production factor allocation system and income distribution system. This involves actively promoting market-based mechanisms for the allocation of land, labor, and capital, ensuring resources are utilized efficiently and effectively across sectors.
Boosting Consumer Spending
Another critical focus is increasing the labor income share and employee compensation ratio. Consumer spending remains a vital driver of China’s economic growth, with retail sales of consumer goods reaching 47.15 trillion yuan ($6.55 trillion) in 2023—a 7.2 percent year-on-year increase. Final consumption contributed 82.5 percent to economic growth, highlighting its significant role in the country’s economic landscape.
Investing in New Productive Forces
Investments in new productive forces are identified as a key strategy for sustainable growth. This concept refers to advanced productivity methods that transcend traditional economic models, with a strong emphasis on science and technology. It aims to drive growth and foster the development of strategic emerging industries such as new energy, high-end equipment, and biotechnology.
Data from the National Bureau of Statistics indicate a steady rise in the contribution of these strategic industries to China’s GDP—from 7.6 percent in 2014 to over 13 percent in 2021, with projections exceeding 17 percent by 2025.
Further Measures for Economic Growth
Experts have proposed additional measures to bolster growth:
- Promoting institutional opening-up to enhance global cooperation and investment opportunities.
- Optimizing resource allocation to ensure efficient use of resources across different sectors and regions.
- Accelerating urban development to support modernization and improve living standards.
- Investing in human capital through education and training to build a skilled workforce.
- Mitigating systemic risks to maintain financial stability and sustainable growth.
Li Daokui, director of the Academic Center for Chinese Economic Practice and Thinking, emphasized the significant potential of China’s maturing economy. He expressed confidence in the projected 5 percent growth rate for 2024, highlighting the country’s strong growth trajectory and resilience.
As China continues to implement these strategies, the global community watches closely, recognizing the nation’s influential role in the global economy and its impact on international markets and development.
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Experts suggest six ways to maximize China's economic growth potential
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