China’s GDP Grows by 5% in First Half of 2024, Steady Progress Amid Global Challenges
China’s economy has shown remarkable resilience in the first half of 2024, with its gross domestic product (GDP) expanding by 5% year on year, according to data released by the National Bureau of Statistics (NBS) on Monday. The GDP reached 61.68 trillion yuan (about $8.65 trillion), reflecting steady progress in transformation and upgrading.
Robust Growth Across Industries
The NBS report highlighted growth across all major sectors. The primary industry saw a 3.5% increase, reaching 3.07 trillion yuan, while the secondary industry grew by 5.8% to 23.65 trillion yuan. The tertiary industry, representing services, expanded by 4.6%, amounting to 34.96 trillion yuan.
Quarterly analysis shows the GDP increased by 5.3% in the first quarter and 4.7% in the second quarter. On a quarter-on-quarter basis, the second quarter grew by 0.7%, indicating sustained economic momentum.
Agricultural Bounty and Food Security
China’s agricultural sector witnessed a significant boost, with the value added of agriculture (crop farming) rising by 4% year on year. The summer grain harvest was particularly noteworthy, producing 149.78 million tonnes—a 2.5% increase over the previous year. This marks another bumper harvest, reinforcing the country’s food security.
The livestock sector also showed positive trends. The output of beef and poultry surged by 3.9% and 6.3%, respectively. While pork and mutton production saw slight decreases, overall meat production remained strong at 47.12 million tonnes.
Industrial Production Accelerates
The industrial sector registered fast growth, with the total value added of industrial enterprises above the designated size growing by 6% year on year. High-tech manufacturing was a standout performer, increasing by 8.7%, driven by significant outputs in 3D printing devices (up 51.6%), new-energy automobiles (up 34.3%), and integrated circuits (up 28.9%).
An analysis by types of ownership showed that state holding enterprises, share-holding enterprises, overseas-funded enterprises—including those from Hong Kong, Macao, and the Taiwan region—and private enterprises all contributed to the growth, indicating a broad-based industrial expansion.
Service Sector Recovery Continues
The service sector continued its recovery, with a 4.6% year-on-year growth in value added. Information transmission, software and information technology services led the way with an 11.9% increase. Transport, storage, postal services, accommodation, catering, and retail also showed solid growth, reflecting increased consumer activity and demand.
Consumer Market Growth
Market sales maintained a growth trajectory, with total retail sales of consumer goods reaching 23.6 trillion yuan, up by 3.7% year on year. Online retail sales were particularly strong, totaling 7.1 trillion yuan—an increase of 9.8%. The catering industry saw an impressive 7.9% rise, signaling a revival in consumer spending.
Investment on the Rise
Investment in fixed assets scaled up to 24.54 trillion yuan, marking a 3.9% increase. Notably, investment in high-tech industries grew by 10.6%, with significant investments in aerospace, computers, e-commerce services, and scientific and technological transformation services. This underscores China’s commitment to innovation and technological advancement.
Foreign Trade Flourishes
China’s imports and exports of goods grew rapidly, totaling 21.17 trillion yuan—an increase of 6.1%. Exports rose by 6.9%, and imports by 5.2%, resulting in a trade surplus of 3.09 trillion yuan. Private enterprises played a significant role, with their imports and exports growing by 11.2% and accounting for 55% of the total trade value.
Stable Prices and Inflation
The consumer price index (CPI) saw a mild pick-up, rising by 0.1% year on year. Core CPI, excluding food and energy prices, grew by 0.7%, indicating stable price levels. Producer prices for industrial products decreased by 2.1%, narrowing the decline from the first quarter.
Employment Holds Steady
Employment remained generally stable, with the urban surveyed unemployment rate averaging 5.1%, down 0.2 percentage points from the same period last year. Rural migrant workers totaled 189.97 million, a 1.6% increase, reflecting steady labor market conditions.
Household Incomes Increase
Household incomes continued to grow, with the nationwide per capita disposable income reaching 20,733 yuan—a real growth of 5.3% after adjusting for price factors. Both urban and rural households experienced income growth, enhancing consumer confidence and spending power.
Outlook and Conclusion
Overall, China’s economy has maintained stable growth in the first half of 2024, making steady progress in economic transformation and upgrading. The positive trends across agriculture, industry, services, investment, and trade signal a robust and resilient economy amid global challenges.
Reference(s):
cgtn.com
