In the first quarter of 2024, China’s economy showed robust growth, surpassing expectations with a year-on-year GDP growth rate of 5.3%. This exceeded forecasts, buoyed by a surge in quarter-on-quarter growth by 1.6 percentage points. The National Bureau of Statistics (NBS) reported a GDP of RMB29.6 trillion (US$4.09 trillion), highlighting significant economic resilience and momentum.
Economic Indicators
The “troika” of China’s economic indicators—consumption, export, and investment—registered positive trends. However, the industrial sector and total consumption growth slightly underperformed expectations, with a 6.1% increase versus the forecasted 6.6%.
Consumption and Investment Trends
Total retail sales of consumer goods, a critical measure of consumption, reached RMB12 trillion (US$1.66 trillion), marking a 4.7% year-on-year increase but falling short of the projected 5.4% growth. Investment in fixed assets surged to RMB10 trillion (US$1.38 trillion), up 4.5% year-on-year, outpacing the anticipated 4% growth.
Sectoral Performance
The service sector expanded by 5% in Q1 2024. Notable growth was observed in transport, storage, and postal services (up by 7.3%) and tourism, accommodation, food, and beverage services (also up by 7.3%).
Income Growth and Disparities
Average disposable income per capita rose by 6.2% year-on-year, adjusted for price factors. Urban residents recorded a per capita disposable income of RMB15,150 (US$2,090), a 5.3% increase in real terms. Conversely, rural residents saw a more significant growth rate of 7.7%, reaching RMB6,596 (US$911) per capita.
China’s economic performance in Q1 2024 reflects a resilient and dynamic economy. Despite some sectors slightly underperforming expectations, overall growth remains robust, driven by strong investment and consumption. The focus on income growth and disparities underscores ongoing efforts to achieve balanced economic development nationwide.