China’s economy has made a robust start to 2024, with its gross domestic product (GDP) expanding by 5.3% year on year in the first quarter, reaching 29.63 trillion yuan ($4.17 trillion), according to data released by the National Bureau of Statistics (NBS) on Tuesday.
The strong growth indicates a faster-than-expected recovery, signaling optimism for the world’s second-largest economy. Key economic indicators showed positive trends across various sectors.
Industrial output, a critical gauge of activity in enterprises with annual turnovers of at least 20 million yuan, increased by 6.1% compared to the same period last year. This uptick reflects heightened industrial activity and strengthened production capacity.
Consumer spending also saw significant growth. Retail sales of consumer goods, a major indicator of consumption strength, climbed 4.7%. This suggests that consumers are feeling more confident and are spending more, contributing to domestic demand.
Investment in fixed assets, such as infrastructure and property, rose by 4.5% year on year. This continued investment indicates that both the public and private sectors are injecting capital into long-term projects, fostering future economic growth.
Employment figures showed improvement, with the surveyed urban unemployment rate averaging 5.2%, down 0.3 percentage points from the same period last year. This decrease points to a healthier job market and increased opportunities for workers.
Sheng Laiyun, deputy director of the NBS, commented on the positive data, stating that China’s economy is off to a strong start in the first quarter. “Production demand picked up, employment and prices remained stable, and market confidence is strengthening,” Sheng said.
Economists have noted that the latest data suggests the economy expanded at a much faster pace than forecasted. Bruce Pang, chief economist and head of research at JLL Greater China, highlighted the impact of policy measures. “Policy push on equipment investment, as well as product renewal and replacement, will continue to boost domestic demand and make the annual GDP target of around 5% achievable,” he said.
Similarly, Raymond Yeung, chief economist for Greater China at ANZ Bank, observed that the growth performance surpassed overall market expectations. “In view of the improved first-quarter performance, we have revised our 2024 China growth forecast upwards,” Yeung stated. He also noted that structural reforms have encouraged spending, leading to a boom in the consumption sector, especially in the year’s first two months.
The strong start to 2024 suggests that China’s economy is on a stable path of recovery, with both domestic and international factors contributing to its growth. Analysts will be watching closely to see if these trends continue in the coming quarters.
Reference(s):
cgtn.com
