China's economy has demonstrated impressive resilience and growth in 2023, achieving a 5.2 percent year-on-year increase. This performance not only meets the government's target of around 5 percent but also surpasses preliminary figures released earlier in the year. The National Bureau of Statistics reported a 5.4 percent rise in per capita GDP, underscoring the robust economic momentum of the world's second-largest economy.
Despite this positive trend, the latest Purchasing Managers' Index (PMI) data revealed a slight dip in manufacturing activity, which fell to 49.1 in February. Bruce Pang, chief economist at JLL Greater China, attributes this minor decline to seasonal factors such as the Chinese New Year, suggesting it is a temporary fluctuation rather than a long-term trend. In contrast, the non-manufacturing PMI showed strong growth, reflecting China's ongoing shift towards a more service-oriented economy.
While some analysts question the sustainability of China's economic growth, others argue that these concerns overlook the dynamic nature of the Chinese economy and its ability to adapt and innovate. A commentary in the national newspaper Economic Daily emphasizes that strategic utilization of China's untapped capital and labor resources could significantly boost economic expansion beyond the 5 percent mark.
The article highlights two major under-utilized factors: the industrial capacity utilization rate, which stood at 75.1 percent in 2023—below the normal level of around 80 percent—and an average urban unemployment rate of 5.2 percent. By addressing these areas, China can enhance its economic growth potential.
Looking ahead, the release of these economic indicators comes just before China's annual key political meetings known as the \"Two Sessions.\" These gatherings are expected to outline the country's policy direction for 2024, focusing on consolidating economic recovery and pursuing high-quality development. These efforts aim to further strengthen confidence in China's economic trajectory.
Reference(s):
cgtn.com
