The Chinese economy got off to a good start in 2024 as several indicators showed positive signs of stable business operation with improved structure in the first quarter of 2024, China's Vice Minister of Commerce Guo Tingting said on Friday.
"China's economy has achieved a good start in the first quarter. Business operations, in general, showed a trend of stability and structural optimization, contributing to the continued economic recovery," Guo said at a press conference in Beijing.
"From the perspective of consumption, it is still the main driving force for economic growth. In the first quarter, China's gross domestic product (GDP) grew 5.3 percent year on year, of which final consumption expenditure contributed 73.7 percent and drove GDP growth by 3.9 percentage points. Sales of upgraded products grew rapidly," Guo continued.
China's retail sales of consumer goods, a major indicator of the country's consumption strength, climbed 4.7 percent year on year in the first three months, said Guo, adding that sales of sports and recreational articles, and telecommunications equipment rose 14.2 percent and 13.2 percent respectively.
Guo also said that the potential of services consumption was released, and the demand for high-quality and experience-rich service increased in the first quarter.
The retail sales of services went up by 10 percent year on year in the first three months, and catering consumption boomed, up by 10. 8 percent, according to the Chinese official.
"From the perspective of foreign trade, China saw a solid start. In the first quarter, the country's foreign trade in goods stood at 10.2 trillion yuan, exceeding 10 trillion yuan for the first time. The contribution of net exports to the total economic growth rose to 14.5 percent. In terms of commodities, exports of labor-intensive products also performed well, with textiles and clothing, furniture and spare parts up by 5.4 percent and 23.5 percent respectively," said Guo.
The strong demand for energy and integrated circuits in China spurred the rise of related imports, growing by 8 percent and 14.3 percent respectively, said Guo.
Guo also said that China's trade with countries participating in the Belt and Road Initiative (BRI) in the first quarter increased 5.5 percent, and the trade with developed countries recovered, with the trade with the United States being 5.5 percentage points higher than that in the previous year.
The number of importers and exporters rose 8.8 percent year on year in the first quarter, of which the number of private enterprises jumped by 10.4 percent, accounting for 85.3 of the importers and exporters, said Guo.
The number of companies reporting employment growth in March increased by 1.7 percentage points from January to February, reaching 88.8 percent and showing a stronger confidence, according to a survey of the Ministry of Commerce.
The number of newly established foreign-funded enterprises reached 12,000, a year-on-year rise of 20.7 percent, said Guo.
Investment in high-tech manufacturing in the first quarter reached 12.5 percent of the total investment, which was an increase of 2.2 percentage points from the same period last year, said Guo, adding that investment in the service industry grew rapidly.
The actual use of foreign capital in the first quarter reached 301.67 billion yuan, which is still at a historical high, said Guo.
Chinese economy achieves good start in Q1: official
Chinese economy achieves good start in Q1: official
