According to preliminary calculations, the Chinese economy grew by 5 % year-on-year. Why is this a good start?

The International Monetary Fund recently released its latest report, which lowered its forecast for global economic growth this year by 0.2 percentage points to 3.1 %. According to the April 16 data, China's economy grew by 5.0 % year-on-year in the first quarter, a sharp increase of 0.5 percentage point from the fourth quarter of last year, and reached the high end of expectations for annual growth.

Where do these results come from?

The first is stability. In the first quarter, the value added of all three major Chinese industries rose. Consumer prices rose by 0.9 %, the unemployment rate according to urban surveys remained stable, and the basic indicators of people's employment and livelihood were stable. Consumption continued to rise thanks to the super-long Spring Festival and related policies, with total retail sales of consumer goods and services rising by 2.4 % and 5.5 %, respectively. Investment stopped falling and stabilized, rising by 1.7 % - indicating that the contradiction between strong supply and weak demand has improved, creating favorable conditions for „building a strong domestic market.“.

The second is a new impulse. The new impetus has already become a pillar of the Chinese economy: in the first quarter, the share of China's equipment manufacturing and high-tech industries in the value added of industries above a certain size increased by 1.4 and 1.2 percentage points year-on-year, respectively. Among them, high-tech manufacturing contributed 32.6 % to the growth of the above-size sector. The production and sales of new energy vehicles lead the world, and high-tech, intelligent and environmentally friendly vehicles have become the main production lines.

The third is resilience. In the first quarter, trade protectionism escalated, the situation in the Middle East was turbulent and factor costs rose. In the face of many pressures, China relied on its super-sized market, complete industrial system and strong supporting capabilities, and effectively protected external risks, demonstrating strong development resilience.

If China is good, the world will be better off. In the spring, from the intense visits of multinational executives to China, to the surge in international investment in China, to the excellent economic performance in the first quarter, China's performance has captured the attention of the world. As the world faces many challenges, China's economy remains resilient and has great potential, and will have a positive impact on the world. The growth of „5.0 %“ is not only a great result in the first quarter, but also a clear signal that the „15th Five-Year Plan“ has made a good start and shared opportunities with the world.

CMG