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News Analysis: China's stronger-than-expected growth bolsters global recovery

Updated: May 13, 2024 Source: Xinhua News Agency
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BEIJING, May 11 (Xinhua) -- A 5.3 percent year-on-year growth of GDP in the first quarter. A 5.7 percent year-on-year growth and a record high volume of foreign trade in goods in the first four months. In April alone, China's foreign trade in goods surged by 8 percent year on year, with imports jumping by 12.2 percent.

These encouraging figures indicate the sustained and enhanced recovery momentum of the Chinese economy, with the hallmarks of remarkable resilience and strength. Its unexpected vigor not only underscores the nation's remarkable adaptability but also provides a much-needed boost to the global recovery.

The resurgence of China's economy came as a welcome surprise to many analysts who had anticipated a more tepid rebound. Its manufacturing activity, fueled by improving domestic demand and a rebound in global trade, has continuously expanded. The purchasing managers' index (PMI) for China's manufacturing sector has been within the expansion range for the past two consecutive months. The export growth highlights the tech-based competitiveness of its evolving products and the optimization of trade structure.

China's consumption recovery has also been gathering steam. Final consumption expenditure contributed 73.7 percent of economic growth in the first quarter. The five-day May Day holiday saw double-digit growth of domestic tourism expenditure year on year. As consumer confidence rebounds, sectors such as retail, hospitality, and entertainment are experiencing a resurgence. This bodes well not only for Chinese businesses but also for global companies.

The booming domestic consumption was seen at the fourth China International Consumer Products Expo held in mid-April in south China's Hainan Province. The event attracted more than 4,000 brands from 71 countries and regions, with record numbers of new products, visitors and exhibited brands. The expo, together with the recent 135th Canton Fair in Guangdong Province and the 2024 Beijing International Automotive Exhibition, demonstrates the world's ever-growing interest in tapping into the largest consumer market.

China's middle-income group has reached 400 million people and is expanding toward 800 million, forming the world's largest and most dynamic middle-income group. The advantage of a super-large-scale market not only provides ample space for the development of Chinese industries and consumption upgrades but also brings tremendous market opportunities to countries around the world.

China is considering and taking major steps to further deepen reform across the board, steadily expand institutional opening up and further expand market access. All this will create an even bigger market and present more opportunities for win-win cooperation with the rest of the world. The prospects for broader mutually beneficial cooperation are realistic given China's position as a main trading partner of more than 140 countries and regions, a primary source of investment for an increasing number of countries, and one of the most important investment destinations for most countries in the world.

Last year, China's GDP reaped a 5.2 percent year-on-year growth, with an increment in excess of 6 trillion yuan (844.95 billion U.S. dollars), which is equivalent to the annual economic aggregate of a medium-sized country. China's contribution to world economic growth reached 32 percent, staying above 30 percent for 11 consecutive years.

China targets a GDP growth of around 5 percent this year. The current growth momentum indicates the target is achievable. International institutions are upbeat about China's economic outlook. Goldman Sachs raised its forecast for China's year-on-year GDP growth this year to 5 percent from 4.8 percent in November last year. Citi raised its China GDP forecast to 5 percent from 4.6 percent.

By navigating through the challenges at home and abroad with dexterity and resolve, China will continue to be a pillar of the world's economic growth. 

Editor: Tian Shenyoujia