China’s economy demonstrated resilience and stability in the first half of 2024, expanding by 5 percent to reach 61.68 trillion yuan ($8.49 trillion). This growth aligns with the government’s annual target, according to data released by the National Bureau of Statistics (NBS) on Monday.
Second Quarter Performance
In the second quarter, China’s GDP grew by 4.7 percent year on year, continuing the positive trend from the first quarter. The NBS noted in a statement that the national economy has been improving steadily, supported by various policy incentives, a rebound in external demand, and the development of new quality productive forces.
Sectoral Growth
The second industry, encompassing manufacturing and construction, showed the most significant growth, expanding by 5.8 percent year on year in the first half of 2024. This outpaced the 3.5 percent increase in the primary industry (agriculture, forestry, and fishing) and the 4.6 percent growth in the service sector.
Wen Bin, chief economist of China Minsheng Bank, emphasized the importance of these developments, highlighting the rapid progression of new quality productive forces and the continuous economic and industrial growth. He noted that the overall performance of the Chinese economy remains stable.
Industrial Output and Domestic Consumption
The value-added industrial output, a key indicator of economic health, registered a robust growth of 6.0 percent year on year. This metric continues to reflect the strength of China’s industrial sector and its contribution to the national economy.
Domestic consumption, another crucial component of balanced economic growth, also saw positive trends. Retail sales increased by 3.7 percent year on year in the first half of 2024, indicating that consumer confidence and spending have remained stable. This stability in domestic consumption is vital for the overall economic health, as it helps to balance external and internal economic activities.
Fixed-Asset Investment
Fixed-asset investment, which includes expenditure on infrastructure, property, machinery, and equipment, grew by 3.9 percent in the first half of the year compared to the same period last year. This growth underscores the ongoing efforts to improve and expand the country’s infrastructure and industrial base.
Innovation and Technological Advancements
China has made substantial progress in its transition towards an innovation-driven economy. Investments in research and development have increased, leading to the commercialization of technological advancements and the creation of high-quality jobs. The government’s focus on fostering innovation is central to its long-term economic strategy, aimed at sustaining growth and enhancing competitiveness on the global stage.
Wen Bin expressed confidence in China’s economic prospects for the second half of 2024. He stated that “with the further implementation of the policies and arrangements, economic growth momentum will become more balanced.”
Policy Support and External Demand
The NBS highlighted the role of policy support in maintaining economic stability. Various policy measures, including fiscal stimulus and monetary easing, have been implemented to support growth. These measures have been crucial in mitigating the impacts of global economic uncertainties and maintaining domestic economic stability.
Furthermore, the rebound in external demand has provided an additional boost to the economy. As global markets recover from the pandemic-induced slowdown, Chinese exports have seen increased demand. This has helped to support industrial production and overall economic growth.
Future Outlook
Looking ahead, China’s economic outlook for the remainder of 2024 appears positive. The combination of strong policy support, robust industrial output, stable domestic consumption, and a continued focus on innovation are expected to sustain economic growth.
The government’s commitment to transitioning towards a more sustainable and innovation-driven economy will likely continue to yield positive results. Investments in high-quality infrastructure and technological advancements will further enhance China’s economic resilience and global competitiveness.
Wen Bin’s optimism about China’s economic future is echoed by many analysts who believe that the foundation laid in the first half of 2024 will pave the way for continued growth. As long as policy measures are effectively implemented and global economic conditions remain favorable, China’s economy is well-positioned to achieve its growth targets for the year.
China’s economic performance in the first half of 2024 has been marked by stability and growth, with a 5 percent increase in GDP. The country’s ability to maintain this growth amidst global uncertainties highlights its economic resilience and the effectiveness of its policy measures. As China continues to invest in innovation and infrastructure, the outlook for the second half of the year remains positive, with expectations of balanced and sustained economic growth.
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