Chinese President Xi Jinping spoke at the fourth plenary session of the National People’s Congress held in Beijing on March 11, 2023. During the first quarter of 2024, China’s economy grew by 5.3%, exceeding expectations set by analysts. Despite this positive growth, retail sales and industrial output in March fell short of initial forecasts. Additionally, the Chinese property market continues to struggle, with new home sales dropping by nearly 31% compared to the previous year.
The National Bureau of Statistics reported China’s economic growth for the first quarter of 2024, with the world’s second-largest economy showing resilience by surpassing analysts’ predictions. Industry played a significant role in contributing to more than one-third of the growth seen in the first quarter. Consumer spending during the Chinese New Year holidays in February also helped support the economy during this period.
While the economic growth figures appeared promising, a closer examination reveals challenges that lie ahead. March retail sales and industrial output in China did not meet the expectations set by analysts. The property market in China faced continued difficulties due to ongoing debt issues, with new home sales declining significantly. Notably, China’s youth unemployment rate, which had reached a record high in June 2023, was omitted from the data reported.
As China prepares for the second quarter, economists predict headwinds to growth as household spending stabilizes and excess inventory is released into the market. China aims to achieve a growth target of around 5.0% for the year 2024. This situation is still developing, and further updates will be provided as more information becomes available.