Beijing, March 12, 2024 – Chinese President Xi Jinping spoke at the fourth plenary session of the National People’s Congress on March 11, 2024. Despite positive growth in the first quarter of 2024, retail sales and industrial output in March fell short of initial forecasts. The Chinese property market also continued to struggle, with new home sales declining by nearly 31% compared to the previous year.
According to the National Bureau of Statistics, China’s economy grew by 5.3% in the first quarter of 2024, surpassing analysts’ predictions. Industry played a significant role in contributing to more than one-third of this growth. Consumer spending during the Chinese New Year holidays in February also helped support the economy during this period.
While these economic growth figures appeared promising, a closer examination reveals challenges that lie ahead. For instance, retail sales and industrial output in China did not meet expectations set by analysts. Additionally, debt issues continue to plague the Chinese property market, with new home sales declining significantly. Notably, China’s youth unemployment rate was omitted from data reported earlier this year due to its criticality for future economic growth prospects.
As China prepares for the second quarter of 2024, economists predict headwinds to growth as household spending stabilizes and excess inventory is released into the market. Despite these challenges, China aims to achieve a growth target of around 5.0% for the year 2024. However, further updates will be provided as more information becomes available regarding this developing situation.
In summary, while China’s economy showed resilience and exceeded expectations in Q1/2024 with industry playing a significant role and consumer spending supporting it; however retail sales and industrial output did not meet initial forecasts while debt issues continue to affect new home sales in China’s property market; youth unemployment rate was omitted from data reported earlier due its criticality for future economic growth prospects; economists predict headwinds to growth as household spending stabilizes and excess inventory is released into market; but further updates are required regarding developing situation where China aims for a growth target of around 5% for year 2024
