In the first quarter of 2024, China’s economy showed strong growth, with a 5.3% increase compared to the same period in 2023. This was higher than the forecasted growth of 4.8% and exceeded the 5.2% recorded in the fourth quarter of 2023. The National Bureau of Statistics reported that the industrial sector played a significant role in contributing to this growth.
The Chinese New Year holidays in February also supported China’s economy during this period, according to Louise Loo, an economist at Oxford Economics. However, a closer examination of the data revealed some areas of concern. Retail sales in March only rose by 3.1%, falling short of the expected 4.8% growth, while industrial output missed predictions by coming in at 4.5%.
Despite these challenges, experts believe that there may be opportunities for China’s economy to continue growing in the second quarter of 2024 as household spending stabilizes and excess inventory is released. China has set a growth target of around 5.0% for this year but with potential headwinds on the horizon, such as a struggling property market and youth unemployment data not included in the report due to changes in methodology calculation, it may be challenging to achieve this target pace of growth.
Overall, updates on China’s economic performance will continue to be forthcoming as this situation evolves.
In summary:
China’s economy grew robustly at a rate of 5.3% in Q1 of 2024 compared to last year’s first quarter, surpassing analysts’ forecast and previous quarter’s record.
Retail sales and industrial output missed their respective targets by rising only by 3.1% and coming at 4.5%, respectively.
While experts anticipate opportunities for growth in Q2 as household spending stabilizes and excess inventory is released.
Updates on China’s economic performance will continue to emerge as this situation evolves with potential headwinds such as struggling property market and missing youth unemployment data due to changes in methodology calculation making it challenging to achieve target pace of growth