China's economy continued its upward trajectory in the first quarter of 2024, with a gross domestic product (GDP) growth of 5.3 percent year-on-year, surpassing market expectations. This impressive performance has bolstered confidence among international observers regarding the country's economic prospects.
Ray Dalio, founder of the Bridgewater Board, shared his positive outlook on LinkedIn, stating, \"Investing in China has been a success for me in all the ways that I hoped to be successful.\" He believes that the leaders guiding China's policies are adept at addressing challenges and restructuring the financial system to enhance productivity. Dalio also highlighted China's ability to manage political, geopolitical, environmental, and technological forces effectively.
Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics, echoed this sentiment in his recent article for Foreign Affairs. He asserted that China is poised to contribute approximately one-third of global economic growth, particularly expanding its influence in Asia. Lardy pointed out the resilience of the Chinese economy, noting increased borrowing by Chinese corporations both in absolute terms and as a share of GDP.
The Wall Street Journal reported a positive trend in China's exports and the global electronics sector, attributing this recovery to the country's monetary easing policies. The easing measures have supported investment, especially in lower-rated borrowers, leading to noticeable improvements in credit markets.
Despite being classified as an emerging market, China's equity values remain the largest among all emerging market countries, according to a recent analysis by U.S. Bank. The study emphasizes that China's position as the world's second-largest economy cements its status as a key player on the global economic stage.
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Observers voice confidence in China's economic outlook amid GDP growth
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