China’s economy experienced strong growth in the first quarter of 2024, with a 5.3% increase from the previous year. This exceeded the 4.8% growth forecasted by analysts and was higher than the 5.2% growth in the fourth quarter of 2023. Sheng Laiyun, the deputy director of the National Bureau of Statistics, emphasized the significant role of the industry sector in driving this growth, which accounted for more than one-third of the overall increase.
Consumer spending during the Chinese New Year holidays in February also contributed to the economic boost in the first quarter. However, despite these positive indicators, there are still challenges ahead. For instance, March retail sales only increased by 3.1% from a year ago, falling short of the 4.8% expected growth. Additionally, industrial output in March was lower than analysts’ predictions, coming in at 4.5% instead of the anticipated 6%.
The Chinese property market remains a concern, with new home sales in the first quarter dropping by almost 31% compared to a year earlier. Notably, the data did not include information on China’s youth unemployment rate, which had reached a record high of 21.3% in June 2023 before the methodology was revised to exclude full-time students. Looking ahead, experts anticipate challenges to China’s growth in the second quarter as household spending returns to normal levels and excess inventory is released into the market.
China has set a growth target of approximately 5.0% for this year, and the country continues to face economic uncertainties as the year progresses. The situation is evolving, and updates on China’s economic performance will be important to monitor in the coming months.