China’s economy is off to a strong start in 2024, with overall GDP growth exceeding annual growth targets thanks to strong performances in the industrial and services sectors. Quarterly economic data released by the National Bureau of Statistics shows several areas of the economy expanded, including industrial output, retail sales, and foreign trade
China’s economy and society in Q1 2024 at a glance:
● GDP: RMB 29.63 trillion (US$4.1 trillion); +5.3% y/y
● Retail sales: RMB 12 trillion (US$1.66 trillion); +4.7%
● Industrial added value*: +4.5%
● Services added value: +5%
● Foreign trade: RMB 10.17 trillion (US$1.4 trillion): +5%
● Fixed asset investment: RMB 10 trillion (US$1.38 trillion); +4.5%
● Disposable income per capita: RMB 11,539 (US$1,594); +6.2%
● Unemployment rate: 5.2%;
● CPI: 0%
*Added value of companies with an annual main business income of over RMB 20 million (US$2.8 million)
China Q1 2024 GDP growth
China’s GDP in the first quarter of 2024 reached RMB 29.63 trillion (US$4.1 trillion) according to preliminary calculations. This is an increase of 5.3 percent from the previous year and an increase of 1.6 percent from the previous quarter when calculated at constant prices.
The secondary industry (industry and manufacturing) saw the highest growth rate, increasing 6 percent year-on-year to reach RMB 10.98 trillion (US$1.52 trillion). The tertiary sector (services), meanwhile, grew 5 percent year-on-year while the primary sector (agriculture and resource extraction) grew 3.3 percent year-on-year.
Industrial output continues strong momentum
The added value of industries above the designated size (companies with an annual main business income of above RMB 20 million) grew 6.1 percent year-on-year, a slight acceleration from the previous quarter. However, growth slowed to 4.5 percent year-on-year in March from the 7 percent growth rate recorded in January and February.
China’s economic outlook in 2024
In its 2024 Government Work Report (GWR), China set a GDP growth target of “around 5 percent” for the year, mirroring the goal established in 2023. This target surpasses the expectations of some international institutions like the IMF and JPMorgan, which forecasted growth rates slightly below 5 percent. The continuity of this ambitious target reflects the confidence of Chinese policymakers in the resilience and potential of the nation’s economy.
Post time: Apr-28-2024