Economy beats growth target as GDP scales new height in 2023 5.2%
The Chinese economy wrapped up 2023 with target-beating growth despite domestic challenges and external pressure, providing a strong impetus for the global economy.
China’s gross domestic product grew 5.2 percent year on year to a new high of 126.06 trillion yuan (US$17.7 trillion) last year, the National Bureau of Statistics said yesterday.
The growth rate was higher than the government’s annual target of around 5 percent and exceeded the 3 percent increase in 2022.
China has accomplished the major targets set for 2023 and seen a solid rebound and improvements in economic performance, said Kang Yi, head of the bureau, who also warned of difficulties and challenges ahead.
China’s contribution to global GDP growth is expected to reach over 30 percent in 2023, making it the strongest growth engine in the world, Kang told a press conference. “China’s growth not only outpaces the estimated global growth of 3 percent, but also ranks top among major economies.”
Despite a downward trend in global trade, China’s exports logged an increase last year. Its consumer price index, up 0.2 percent last year, was “in stark contrast” with persistently high inflation in some countries, Kang added.
Yesterday’s data also revealed that key segments of the economy, including consumption and service activity, have recovered after China adjusted its COVID19 response at the beginning of 2023.
China’s gross domestic product grew
5.2 percent year on year to a new high of 126.06 trillion yuan (US$17.7 trillion) last year, the National Bureau of Statistics said yesterday.
Consumption was a significant growth driver. Final consumption contributed 82.5 percent to GDP growth in 2023, with retail sales of consumer goods up 7.2 percent on year to 47 trillion yuan.
The service sector saw its value-added output rise 5.8 percent from a year ago, accounting for 54.6 percent of the GDP.
The value-added industrial output, an important economic indicator, went up 4.6 percent yearly in 2023, the NBS said. In December alone, the figure grew 6.8 percent from a year earlier and 0.52 percent from November.
On the real estate sector, Kang said there were some positive changes, citing narrower declines in major indicators such as property development investment and the sales of commercial housing.
In the four first-tier cities, namely Beijing, Shanghai, Guangzhou and Shenzhen, prices of new homes edged down 0.4 percent last month, while that of resold homes dropped 1.1 percent.
The surveyed urban unemployment rate on average in China stood at 5.2 percent in 2023, down 0.4 percentage points from 2022, data showed.
The employment situation is generally stable, the NBS said.
Fixed asset investment went up 3 percent on year in 2023. High-tech industries saw strong growth, with investment up 10.3 percent annually. Specifically, investment in high-tech manufacturing and high-tech services expanded by 9.9 percent and 11.4 percent, respectively.
When asked about China’s economic outlook in 2024, Kang said the economy will continue to rebound and improve as “the country’s long-term sound fundamentals remain unchanged.”
China’s economic development this year is underpinned by various favorable conditions, including sound economic momentum, strong resilience, great vitality, deepened reform and opening-up, and ample policy space, Kang said.
The positive effects of an array of measures introduced in 2023, including the issuance of more government bonds, tax and fee cuts, as well as the reserve requirement ratio and interest rate reductions, are likely to extend to this year.
Several international organizations, such as the Organization for Economic Cooperation and Development and the International Monetary Fund, also gave a nod to China’s economic prospects in 2024 and revised up their growth forecasts.
Nevertheless, Kang cautioned that the economic development still faces difficulties and challenges as the external environment has become more complex and severe with increased uncertainties.
(Xinhua)