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Robust start of China's economy boosts global economic prospects

By He Yin Source: People's Daily Updated: 2024-04-23

China's gross domestic product (GDP) in the first quarter of this year grew by 5.3 percent year-on-year, an increase of 1.6 percent from the previous quarter, according to statistics released by the country's National Bureau of Statistics on April 16.

The Chinese economy has kicked off a steady start in 2024 with continuous recovery and stable growth, which further enhances the international community's positive expectations for China's development prospects.


Photo shows a bustling night market in Nan'an district of southwest China's Chongqing municipality. [People's Daily Online/Guo Xu]

It is reported by international media outlets that China's economy has got off to a good start and confidence is keep recovering.

Currently, the positive factors supporting the continued recovery and improvement of China's economy are accumulating, laying a relatively good foundation for achieving the goals and tasks for the whole year.

In the first quarter, the four major macroeconomic indicators of growth, employment, inflation, and international balance of payments generally remained stable.

The growth of fixed asset investment increased by 1.5 percentage points compared with that in 2023, and the total retail sales of consumer goods and services went up by 4.7 percent and 10 percent, respectively. The growth of imports and exports hit a new high in the past six quarters, and per capita disposable income of residents increased by 6.2 percent.

Recently, international financial institutions such as the Asian Development Bank (ADB), Goldman Sachs, and Morgan Stanley have raised their forecasts for China's economic growth rate this year. Asian Development Outlook April 2024 released by ADB predicted that from 2024 to 2025, China will account for 46 percent of the economic growth of Asian developing countries and remain the largest contributor to the global economic growth.

The Q1 economic performance of China showed new progress made by new quality productive forces in industries, business activities, and products.

In the first quarter, the value-added by high-tech manufacturing enterprises above designated size grew by 7.5 percent year-on-year, an increase of 2.6 percentage points compared with that in the fourth quarter of last year. Investment in high-tech industries grew by 11.4 percent year-on-year, up 1.1 percentage points from 2023. Investment in high-tech services was up by 12.7 percent.

Despite rapid growth in previous years, the output of new energy vehicles in the first quarter of this year grew by 29.2 percent. In the same period, the output of charging piles, 3D printing equipment, and electronic components surged by 41.7 percent, 40.6 percent, and 39.5 percent year-on-year, respectively.


Electronic cables are manufactured in a workshop of a factory in Shangqiu, central China's Henan province. [People's Daily Online/Xu Zeyuan]

China's accelerated development of new quality productive forces not only creates new momentum and advantages for its own development, but also injects new impetus for international cooperation.

China's exports of electric vehicles, lithium batteries, photovoltaic products, and others have enriched global supply, eased global inflationary pressures, and made a tremendous contribution to global efforts to address climate change and the green and low-carbon transition.

The continued rebound of the Chinese economy is an important positive factor for the world economy. Steven Alan Barnett, senior resident representative in China of the International Monetary Fund, estimates that 1 percentage point more growth in China fuels 0.3 percentage points of growth elsewhere. He said the Chinese economy remains an important engine driving the global economy.

In the first quarter, China's total trade with Belt and Road partner countries grew by 5.5 percent, continuing to be an important driver of global trade growth.

The positive outlook for China's economy is also attracting more multinational companies to come and explore opportunities and seek cooperation. Leaders of over 100 multinational corporations visited China. The 4th China International Consumer Products Expo attracted over 4,000 brands from 71 countries and regions. Over 60,000 overseas buyers were present at the 135th session of the China Import and Export Fair on the event's inaugural day. In the first two months of this year, the number of newly established foreign-invested enterprises in China increased by 34.9 percent year-on-year, reaching the highest level in the recent five years.


A pure electric vehicle is assembled on a smart production line in a workshop of a new energy vehicle company in Nanchang, east China's Jiangxi province. [People's Daily Online/Zhu Haipeng]

Oliver Zipse, chairman of the Board of Management of BMW AG, believes that China is BMW's largest global market, and it is where the future lies.

For some time, there have been voices deliberately exaggerating the challenges facing China's economy and hyping up the so-called "China peak theory," which are complete misreading of China's economic situation and development prospects.

China's economy has a solid foundation and various strengths. It has great resilience, vitality and potential. These characteristics remain unchanged. The fundamentals sustaining China's long-term economic recovery and growth also remain unchanged.

A China that continues to promote high-quality development and advance Chinese modernization will not only bring a better life to the Chinese people, but also make greater contributions to the recovery and development of the world economy.

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