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Recovery momentum of Chinese economy strengthened

Source: Xinhua Updated: 2024-04-07

BEIJING -- The recent upturn in multiple economic indicators signifies a strengthening recovery momentum in China's economy, injecting new impetus into the global economy.

The purchasing managers' index (PMI) for China's manufacturing sector was 50.8 in March, ending five consecutive months of contraction, according to the National Bureau of Statistics (NBS).

A reading above 50 indicates expansion, while a reading below 50 reflects contraction. The March figures are seen as an encouraging sign in terms of business outlook, especially in production and demand.

Notably, in March, the non-manufacturing business activity index and the composite PMI output index came in at 53.0 and 52.7, respectively, up 1.6 and 1.8 percentage points, respectively, from the previous month, and both were also in expansion territory.

The simultaneous rebounding of these three major indices shows that the Chinese economy has continued its momentum of recovery and growth, with internal drivers of development built up, public expectations further improved, and solid progress achieved in high-quality development.

These figures also confirm that the country's policies aimed at stabilizing growth and boosting market confidence are taking effect.

China's economic vitality is further reflected by the status of small and medium-sized enterprises, which are major creators of job opportunities. The PMI of these two categories returned to the expansion range in March after 11 consecutive months of contraction.

Other figures also point to a good start in 2024. China's imports and exports of goods expanded 8.7 percent year on year in the first two months of the year -- with exports returning to double-digit growth.

China is targeting a GDP growth rate of around 5 percent for this year. The recent uplifting statistics add to the confidence that the target of the world's second-largest economy can be achieved through continued and determined efforts. 

The views don't necessarily reflect those of Qiushi Journal.