In the first half of the year, the Chinese economy demonstrated steady progress with increased production, sustained recovery in demand, and generally stable employment and prices. Preliminary estimates indicate that the gross domestic product (GDP) for the first half of 2024 rose by 5.0% compared to the same period last year (See NBS).

Below a brief overview of some of the highlights announced in China’s 2024 Q2 statistics:

Agricultural Growth Remains Stable

In the first half of the year, the value added of agriculture (crop farming) increased by 4.0% compared to the same period last year. Similarly, summer grain had another successful harvest, with a total output of 149.78 million tons, which is 3.63 million tons more than last year, a 2.5% increase.

Imports and Exports Grew Steadily

In the first half year of 2024, the total value of imports and exports of goods experienced an increase of 6.1% compared to 2023. The total value of exports grew by 6.9% compared to 5.2% growth for imports. Imports and exports by private enterprises grew by 11.2%, making up 55.0% of the total value, which is 2.5 percentage points higher than the same period last year.

Expansion in Manufacturing Sector

The total value added by industrial enterprises grew by 6.0% compared to the same period last year. The manufacturing sector saw a 7.8% increase. Additionally, the value added by state-owned enterprises rose by 4.6%, and that of foreign-owned enterprises increased by 4.3%. Notable products in terms of growth in Q2 include 3D printing devices, new-energy automobiles, and integrated circuits.

Continued Rise in Market Sales

In the first half year, total retail sales of consumer goods amounted the total retail sales of consumer goods amounted 23,5 trillion yuan, reflecting a year-on-year increase of 3.7%. In the same period, national retail sales online reached 7 trillion yuan, which is a 9.8% increase year-on-year.

Unemployment Shows Stable Features

In the first quarter, the urban surveyed unemployment rate averaged 5.1%, showing a decline of 0.2% compared to the same period last year. Specifically, in March, the surveyed unemployment rate in urban areas decreased to 5.2%, marking a 0.1% reduction from both the previous month and the same month last year.

Q2 2024 economic data reflected both consumer spending growth and manufacturing headwinds, painting a mixed picture of China’s economic momentum heading into the second half. MSA Asia’s China company setup guidance contextualizes economic trends. Reach out with questions about market outlook.