China’s GDP grows by 5% in first half of 2024
China’s GDP grew by 5% year-on-year in the first half of this year to 61.68 trillion yuan ($8.49 trillion), demonstrating a steady economic rebound, the country’s National Bureau of Statistics (NBS) has reported.
In the second quarter of this year, the economy grew by 4.7% in comparison to a year earlier, following 5.3% growth in the first quarter of the year. On a quarter-on-quarter basis, China’s GDP increased by 0.7% in the second quarter of the year, the NBS said.
Figures released by the NBS showed China’s value-added industrial output, a gauge of activity in the manufacturing, mining and utilities sectors, grew by 5.3% in June from a year earlier after a 5.6% rise in May.
In the first half of the year, value-added industrial output grew by 6% compared with the same period last year, while in the first quarter it rose by 6.1% from a year earlier.
Retail sales, a key measurement of consumer spending, grew by 2% year-on-year in June, down from the 3.7% growth in May.
In the first half of the year, retail sales grew by 3.7% compared with the same period last year, while in the first quarter they grew by 4.7% from a year earlier.
The surveyed urban jobless rate came in at 5% in June, consistent with the previous month, according to the NBS.
However, the organisation warned that pressures from a complicated external environment and a lack of effective domestic demand could hamper the recovery.
The NBS’ figures are backed up by other economic indicators that point towards improved performance of the Chinese economy in the first half of 2024.
Speaking at a recent symposium on the economic situation, Chinese Premier Li Qiang said that the national economy “has sustained sound upward momentum and nurtured new growth drivers despite the complex external environment since the start of this year”.
Although there are still many difficulties and challenges, policy measures from the government have continued to take effect, and positive market factors are building up, Li said.
The Chinese Premier stressed that policy measures should be centred on achieving this year’s economic growth targets.
China should further ensure solid macroeconomic policy delivery, work to leverage policy synergies, enhance the effectiveness of policy implementation and facilitate the sustained and healthy development of the economy, Li said.
Foreign trade on the rise
China’s foreign trade reached a new high in the first six months, with the volume of goods traded expanding 6.1% year-on-year to 21.17 trillion yuan ($2.97 trillion), according to the latest customs data. In particular, export growth rose 6.9% year-on-year during the period.
Consumer spending has also increased, with Chinese consumers more willing to spend on dining, live concerts and trips. According to data from the China Association of Performing Arts, the country’s box office revenues saw a surge of around 13% in the first half of 2024, compared with the same six-month period in 2023.
Boom in tech investment
The NBS data also found that tech-related industries have become favoured sectors among investors. It found that investment into high-tech industries posted year-on-year growth of 11.5% in the January-May period.
NBS spokesperson Liu Aihua explained that the Chinese economy currently faces an increasingly complex and severe external environment and insufficient domestic demand.
He pointed out that to boost market demand China has implemented several measures in June, including expanding its visa-free transit policy, relaxing vehicle purchase restrictions, and promoting the consumption of intelligent, AI-powered electronics.
The country also initiated a new round of consumer goods trade-ins in March. With more subsidies and incentives, the initiative has led to rising sales of products such as cars, home appliances and furniture.
Zhang Bin, deputy director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, said insufficient demand is still the major problem stalling China’s economic operation. He called for efforts to further strengthen counter-cyclical adjustments by leveraging fiscal and monetary policies.
