China's 2024 economic midterm: Mixed signals emerge

AMIDST a turbulent internal and external landscape, the Chinese economy has managed to produce a noteworthy "midterm paper," demonstrating resilience with a relatively mixed performance in the first half of 2024. On July 15, the National Bureau of Statistics released its 2024 China Economic Semi-annual Report, revealing a 5 percent year-on-year GDP growth. However, in the second quarter, China's economy grew by 4.7 percent year-on-year, following a 5.3 percent increase in the first quarter, while on a quarter-on-quarter basis, GDP rose by 0.7 percent. This mixed economic performance underscores the complex landscape China is confronting as it seeks to maintain its growth momentum.The NBS data highlights that China's value-added industrial output -- a key indicator of activity in manufacturing, mining and utilities -- grew by 5.3 percent in June compared to the previous year, slightly down from a 5.6 percent rise in May. For the first half of the year, the value-added industrial output saw a 6 percent year-on-year increase, following a 6.1 percent rise in the first quarter.

These figures reflect both resilience and the emerging challenges within the Chinese economy. The slight deceleration in growth rates suggests that while industrial sectors remain robust, there are underlying pressures that need addressing. To sustain its economic dynamism, China must continue to innovate and adapt, leveraging its strengths in industrial output while addressing vulnerabilities. Strategic reforms and robust policies will be crucial as China tries to ensue a stable and sustained growth. Notably, the total import and export volume of goods surged by 6.1 percent year-on-year, with exports rising by 6.9 percent, surpassing foreign media expectations. Investment in high-tech industries also saw a significant increase of 10.6 percent year-on-year, fostering new avenues of quality productivity. However, the deceleration in GDP growth during the second quarter denotes the mounting challenges facing the economy.