Observers voice confidence in China's economic outlook amid GDP growth

China's gross domestic product (GDP) expanded by 5.3 percent year on year in the first quarter of 2024, beating market expectations. 

International observers have recently expressed confidence in the country's economic outlook.

"Investing in China has been a success for me in all the ways that I hoped to be successful," founder of the Bridgewater Board Ray Dalio said on LinkedIn in April.

"I think those who guide policy in China will eventually come around to dealing with the problems well... Like all countries throughout history, they can restructure the financial system economy to be productive. They can also manage how to deal with political, geopolitical, nature, and technology forces well," he said. 

China will likely continue to contribute about a third of the world's economic growth while increasing its economic footprint, particularly in Asia, said Nicholas Lardy, senior fellow at the Peterson Institute for International Economics, wrote in Foreign Affairs.

He highlighted the resilience of Chinese economy, noting that Chinese corporations have ramped up borrowing, both in absolute terms and as a share of GDP. 

Exports and the global electronics sector seem to be on the mend again, and looser Chinese credit markets are helping support investment, the Wall Street Journal reported recently, adding that China's recent monetary easing seems to be working while credit markets have begun to noticeably improve, particularly for lower-rated borrowers.

China is still classified as an emerging market, but its equity values represent, by far, the largest among all emerging market countries, the U.S. Bank said in a recent analysis.

"China's status as the second largest economy in the world continues to position it as an important player on the global economic stage," it said.