First-quarter economic data highlights China's strong economic resilience

Editor's note: Xue Tianhang is a researcher at the Research Center for Regional Coordinated Development, Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.

In the face of a complex and challenging international environment, China's economy made a steady start in the first quarter. Market expectations continued to improve and consumer markets were bustling, indicating a clear trend of economic recovery and improvement.

According to the latest data from the National Bureau of Statistics, various indicators continued to rebound in the first quarter. Gross domestic product (GDP) in the first quarter increased by 5.3 percent year on year, up by 0.8 percentage point compared to the same period in 2023, laying a solid foundation for achieving the annual target. Production indicators steadily increased, with the value-added of industrial enterprises above the designated size growing by 6.1 percent year on year, 1.5 percentage points higher than the previous year. New quality productive forces were nurtured and strengthened, and high-tech industries saw rapid investment growth. Furthermore, profits rebounded in industries such as equipment manufacturing and high-tech manufacturing. All these effectively enhanced the development momentum. 

Amidst escalating trade protectionism, intensifying geopolitical conflicts, and persistently weak external demand, China's total goods trade reached 10.17 trillion yuan ($1.4 trillion) in the first quarter, a year-on-year growth of 5 percent. This marked the first time in history that the figure surpassed 10 trillion yuan at this time of the year, which was also a new high in six quarters, demonstrating the strong vitality of China's export-oriented economy.

The service industry displayed positive growth trends, with value-added of services increasing by 5 percent year on year, significantly strengthening its support toward economic growth. Market sales continued to recover, with consumption potential in high-quality goods being unleashed and holiday promotions driving up service consumption. Overall, employment remained stable. The urban surveyed unemployment rate decreased, per capita disposable income of residents rose by 6.2 percent year on year in real terms, and total retail sales of consumer goods surpassed 12 trillion yuan, a year-on-year increase of 4.7 percent. The role of domestic demand in driving economic growth was further enhanced. 

In terms of market expectations, confidence was boosted, logistics and personnel flow became more active, with business activity and expectation indices in the high prosperity range of 52.4 percent and above.

The performance of the first quarter reflects not only China's continued positive trend of economic recovery and long-term improvement but also the continuous accumulation of factors supporting high-quality development, demonstrating the strong resilience of the Chinese economy. However, it should be noted that as the external environment becomes increasingly complex, daunting, and uncertain, it is essential to overcome certain difficulties and exert greater efforts to maintain China's economic growth.

In the next stage, we must adhere to the principle of prioritizing stability while seeking progress. It is important to start with improving social expectations, boosting confidence in development, expanding high-level opening-up, and continuously optimizing the business environment. We should vigorously deepen reform, strengthen policy coordination, and promote overall improvement in economic operation so as to effectively improve the quality of growth in a rational level.