Chinese economy is gradually rebounding. The long-term trajectory of positive growth in this country is unlikely to change. As Kavan Choksi Japan mentions, with the consistent high-quality development taking place in the country, China’s economy is likely to accelerate its transformation and make greater contributions to the global economy. This economy is on a steady trajectory to further growth. As of 2023, China achieved a GDP exceeding 126 trillion yuan, a year-on-year growth of 5.2%. In comparison to the growth rate in developed economies, the 5.2% growth rate is quite impressive.
Kavan Choksi Japan provides insight into the long-term positive trajectory of the Chinese economy
From 2013 to 2023, the Chinese economy achieved an average annual growth rate of 6.1 %, ranking among the leaders in the world. It has contributed more than 30 % to global economic growth each year. The total economic output of the country exceeded 126 trillion yuan last year, thereby maintaining the second position in all economies. Moreover, China’s per capita GDP has surpassed $12,000 for three consecutive years. Even employment and prices have remained largely stable in China in the recent past, with more than 140 million new urban jobs created from 2013 to 2023.
The GDP of China expanded by 5.3 % year-on-year in the first quarter of 2024, with domestic demand contributing about 85.5 % to the growth. This domestic demand served as the key driving force behind the economic expansion. Retail sales of China grew 4.7% year-on-year to 12.03 trillion yuan ($1.66 trillion) in the first quarter. On the other hand, industrial added-value was up 6.1 %, and fixed-asset investment went up by 4.5 % to 10 trillion yuan.
Even though there have been fluctuations in the growth trajectory of China’s economy in the second quarter of 2024, the overall trend is positive. Broadly speaking, the favourable factors for development in China exceed the unfavourable aspects, and the economic growth trend is likely to remain stable and positive in the long term.
China’s GDP for the second quarter of 2024 expanded by 4.7 % year-on-year, a slight slowdown from the 5.3 % growth seen in the first quarter. This dip in the GDP growth in the second quarter was impacted by certain short-term factors like floods and extreme weather. It also reflects the rising challenges in regard to current economic operations, starting from clogged domestic circulation and inadequate domestic market demand. However, despite of the challenges posed by domestic structural adjustment and external uncertainties, the economy of China has managed to withstand pressure and operated relatively smoothly.
As Kavan Choksi Japan underlines, in the second quarter of 2024, China’s gross economic output exceeded 32 trillion yuan ($4.40 trillion). Moreover, its industrial added value and total import and export of goods both managed to surpass 10 trillion yuan. Looking ahead to the second half of 2024, summer grain and vegetable oil harvest, as well as potential for growth in market demand can provide a solid foundation for economic growth. Issuance of special government bonds, consumer products trade-ins, implementation of large-scale equipment renewal and industrial structure upgrades are likely to further elevate operational vitality and boost economic growth.
