China’s top economic planner, the National Development and Reform Commission (NDRC), announced that the nation’s economy has continued its steady recovery and improvement in the first quarter of this year. Key economic indicators have shown accelerated growth, structural adjustments are progressing smoothly, and quality and efficiency are steadily increasing. The NDRC emphasized that people’s livelihoods have been effectively safeguarded, market expectations have generally improved, and a stable and promising start has been achieved for the first quarter.
Accelerated Macroeconomic Indicators
From a macroeconomic perspective, major indicators have accelerated. Official data from the NDRC reveals that China’s GDP grew by 5.3% year-on-year in the first quarter. Industrial added value increased by 6%, up 0.8 percentage points from the previous quarter. Fixed asset investment rose by 4.5%, up 1.5 percentage points from the previous year. The total value of goods imports and exports grew by 5%, with exports up by 4.9%, an increase of 4.1 percentage points from the previous quarter.
Regional Economies Stabilize and Improve
Regional economies have also stabilized and improved. Provinces with strong economies in the eastern regions, such as Guangdong, Jiangsu, Shandong, and Zhejiang, continue to play a leading role. Economic growth in key regions like the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area has been relatively fast. Industries in the central and western regions have accelerated their transformation and upgrading, with high-tech manufacturing in Anhui and Hubei provinces growing by 23.4% and 21.5% respectively. High-tech industry investment in Sichuan province increased by 17.7%, all significantly faster than the national average. Major projects in the northeastern region are also accelerating.
Improved Industry Performance and Confidence
Operating efficiency and confidence among industries and enterprises have steadily improved during the first quarter. Official data shows that the total profits of industrial enterprises above the designated size increased by 4.3% year-on-year. The Purchasing Managers’ Index (PMI) for manufacturing in April was 50.4%, staying above the boom-bust line for two consecutive months. New products and formats are flourishing, with the production of 3D printing equipment, service robots, and new energy vehicles growing by 40.6%, 26.7%, and 29.2% respectively in the first quarter. Online retail sales driven by instant retail and live streaming have also seen growth.
Employment and Income on the Rise
From the perspective of residents’ lives, employment and income have continued to improve. In the first quarter, over three million new urban jobs were created, an increase of 60,000 compared to the same period last year. The urban surveyed unemployment rate in March was 5.2%, down 0.1 percentage point from the previous month and the same period last year. China’s per capita disposable income increased by 6.2% year-on-year, 0.9 percentage points faster than economic growth, with urban and rural residents’ incomes rising by 5.3% and 7.7% respectively.
Advancing a Unified National Market
The NDRC also emphasized the importance of accelerating the construction of a unified national market, which is seen as an essential requirement to facilitate domestic circulation and promote the establishment of a new development pattern. It is also an important lever to unleash domestic demand potential and promote sustained economic recovery and improvement. The NDRC and relevant parties have established and effectively utilized a coordination mechanism to promote the construction of a unified national market, positively contributing to improving market conditions and social expectations.
Growth in New Energy Vehicles
Regarding the development of new energy vehicles (NEVs), officials pointed out that China’s NEV market has maintained rapid growth, showing strong vitality in both supply and demand. Production and sales of NEVs reached 2.115 million and 2.09 million units respectively, representing year-on-year increases of 28.2% and 31.8%. Product supply is becoming increasingly abundant, with both domestic and foreign companies leveraging their advantages in the NEV industry chain and supply chain. Since the beginning of the year, more than 30 NEV models have been released or launched for sale. The NDRC stated that it will continue to promote industry innovation through technological advancement, better meet consumer demand, and accelerate infrastructure construction to support the industry’s high-quality development.
Positive Outlook Ahead
Overall, a positive trend characterizes China’s economy in the first quarter. Officials highlighted that positive factors are increasing, momentum is continuously strengthening, social expectations are improving, and high-quality development is steadily advancing. These developments lay a solid foundation for achieving the annual economic goals. Moving forward, officials are committed to effectively consolidating and enhancing the positive trend of economic recovery, aiming to achieve the annual goals with high quality.
Reference(s):
NDRC: China's economy continues to recover and improve in Q1
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