China’s Economy Takes Off: 5.3% GDP Growth in First Quarter 2024

In the bustling workshop of intelligent machinery in Qingzhou, Weifang City, Shandong Province of China, a diligent employee is meticulously working on the assembly line. This scene serves as a powerful reminder of China’s rapidly expanding economy, as evidenced by the latest data released by China’s National Bureau of Statistics on March 31, 2024.

According to this data, China’s gross domestic product (GDP) grew by an impressive 5.3% in the first quarter of the year compared to the same period in the previous year. This growth surpassed the 4.6% forecast by economists polled by Reuters and marked an acceleration from the 5.2% expansion seen in the fourth quarter of 2023.

On a quarter-on-quarter basis, China’s GDP grew by 1.6% in the first quarter, exceeding the 1.4% expected by the Reuters poll. This growth trajectory aligns perfectly with Beijing’s target of achieving around 5% growth in 2024.

Last week, Morgan Stanley revised its real GDP forecast for China to 4.8%, up from its previous projection of 4.2%. Despite weak export and inflation data earlier in the month, the Chinese economy continues to show signs of resilience and strength.

Industrial output for March increased by just 4.5% year on year, falling short of the expected growth rate of 6%. Similarly, retail sales saw a modest growth rate of only 3.1%, below expectations of 4.6%. However, despite these slight setbacks, there was a notable decrease in major city unemployment rates to just 5.2%, ending a three-month streak of increases and indicating that job opportunities are becoming more accessible for workers and businesses alike.

In response to this news, offshore yuan experienced a slight strengthening before retreating from its five-month high against US dollar exchange rates.

This story is still unfolding as more information becomes available so stay tuned for updates and insights about China’s rapidly growing economy and its impact on global markets.