January 20, 2024 China has reported a GDP growth of 5.2% for the year 2023, meeting the annual target and aligning with market forecasts. The country’s GDP now stands at 126 trillion yuan ($17.67 trillion), making it the world’s second-largest economy. In the fourth quarter of 2023, China’s GDP expanded by 5.2%. Chinese Premier Li Qiang disclosed this information during a speech at the World Economic Forum annual meeting in Davos.
Analysts noted that despite challenges, including a slowdown in the real estate industry, China’s economy exhibited remarkably steady growth over the past year. Vibrant spending in the services sector, substantial investments in high-end manufacturing, and notable progress in foreign trade activities contributed to the positive performance. The data also refuted attempts by certain foreign media outlets to portray a negative picture of China’s economic recovery.
The 5.2% growth rate for 2023 surpassed the estimated average of 3% growth for the world economy. The contribution of the Chinese economy to global growth is expected to exceed 30%, establishing China as the largest growth engine globally. Analysts emphasized the strong internal dynamics of the Chinese economy and its significant potential for continuous expansion, even amid a turbulent international macroeconomic environment.
Government analysts acknowledged the achievements but highlighted the increasingly complex, severe, and uncertain external environment, suggesting that economic growth still faces difficulties and challenges. Looking ahead, experts anticipate that the government will need to address issues such as ultra-low inflation and a weak property sector in 2024, emphasizing the importance of pro-growth stimulus measures.
Economists noted that China’s ability to achieve a 5.2% growth rate under challenging conditions demonstrates the country’s firm commitment to the new economy powered by digital technologies. The recovery trajectory in 2023 exhibited some fluctuations, indicating an uneven recovery that requires additional efforts to restore the full vigor of the economy.
Despite uncertainties in overseas demand, geopolitical conflicts, and the reshaping of global industrial and supply chains, China’s recovering industrial sector remains a crucial factor in the country’s economic growth. Analysts stressed the need for the government to bolster goods prices, addressing concerns about a continued softening of consumer prices.
Looking forward to 2024, the Chinese economy is expected to continue on a recovery track, with opportunities outweighing challenges. China’s resilience and room for policy adjustments position it as a driving force for global economic resurgence. International organizations, including the IMF and the OECD, have revised China’s growth projections for 2024, reflecting confidence in the country’s high-quality development.
China is expected to set a GDP growth target of 5% for 2024, with potential growth anticipated to be above 5%. Strong measures to guide green consumption and investment are expected, along with efforts to offload excess supplies in the economy. Experts remain optimistic about China’s economic growth in 2024, projecting a GDP growth rate of around 5%. Positive factors include expanding consumption of goods, improving employment and resident income, and a stabilizing property market.
As China embarks on the new year, thousands of key projects have commenced construction across various regions, focusing on new economy sectors, high-end manufacturing, infrastructure, and urban improvement. Efforts are underway to achieve a robust economic start in 2024. The Chinese Academy of Sciences Center for Forecasting Science forecasts a stable growth for China’s economy in 2024, with a projected GDP growth of 5.3%.
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