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Key Factors Supporting China's Economic Growth in the Second Half of 2024

Sep 19-2024   



On the afternoon of 28 July, the Think-tank Centre of Peking University and NetEase Finance co-hosted the 69th edition of the China Economic Observation Report(CEO), inviting statistician Xu Xianchun to share his views on "Characteristics of China's Economy in the First Half of the Year and the Key Factors Supporting China's Economic Growth in the Second Half of the Year”.

 

First, Xu Xianchun analyzed the characteristics of China's economy in the first half of the year from four perspectives: production, demand, income, and price. From the production perspective, the secondary industry is growing faster than most other industries. The value added by this industry is also increasing, while most other industries are shrinking. The modern service industry is growing faster than most other industries. From the demand side, consumer demand weakened, while investment demand improved. The growth rate of spending declined, but new spending patterns grew quickly. Investment in fixed assets slowed, but spending on high-tech industries grew fast. Goods imports and exports grew fast, and the export structure improved. As for the income, it grew steadily, but at a slower rate. Profits of large industrial companies grew, but there was more variation. From the perspective of prices, prices in the consumption sector rose less than last year, but prices in the production sector continued to fall.

 

On this basis, Xu Xianchun analyzed the factors supporting China's economic growth in the second half of the year. Firstly, exports are expected to maintain a positive growth trajectory. Secondly, relevant policies are conducive to fostering investment demand. Thirdly, relevant policies and reform initiatives are supportive of consumer demand. Fourthly, new quality productive forces are the drivers of economic development.

 

Therefore, Xu Xianchun highlighted the necessity of implementing the policy deployment in the second half of the year to optimize its efficacy. This can be achieved by focusing on four key areas: Firstly, the implementation of major national strategies and the development of security capacity in key areas should be accelerated. Secondly, we should intensify our efforts to promote large-scale equipment replacement and consumer goods trade-in, to drive industrial transformation, upgrading and economic recycling. Thirdly, we should continue to provide affordable homes, renovate urban villages and improve public infrastructure. Last but not least, to stabilize investment and promote growth, we should make good use of local special bonds.

Key Factors Supporting China's Economic Growth in the Second Half of 2024

Sep 19-2024   



On the afternoon of 28 July, the Think-tank Centre of Peking University and NetEase Finance co-hosted the 69th edition of the China Economic Observation Report(CEO), inviting statistician Xu Xianchun to share his views on "Characteristics of China's Economy in the First Half of the Year and the Key Factors Supporting China's Economic Growth in the Second Half of the Year”.

 

First, Xu Xianchun analyzed the characteristics of China's economy in the first half of the year from four perspectives: production, demand, income, and price. From the production perspective, the secondary industry is growing faster than most other industries. The value added by this industry is also increasing, while most other industries are shrinking. The modern service industry is growing faster than most other industries. From the demand side, consumer demand weakened, while investment demand improved. The growth rate of spending declined, but new spending patterns grew quickly. Investment in fixed assets slowed, but spending on high-tech industries grew fast. Goods imports and exports grew fast, and the export structure improved. As for the income, it grew steadily, but at a slower rate. Profits of large industrial companies grew, but there was more variation. From the perspective of prices, prices in the consumption sector rose less than last year, but prices in the production sector continued to fall.

 

On this basis, Xu Xianchun analyzed the factors supporting China's economic growth in the second half of the year. Firstly, exports are expected to maintain a positive growth trajectory. Secondly, relevant policies are conducive to fostering investment demand. Thirdly, relevant policies and reform initiatives are supportive of consumer demand. Fourthly, new quality productive forces are the drivers of economic development.

 

Therefore, Xu Xianchun highlighted the necessity of implementing the policy deployment in the second half of the year to optimize its efficacy. This can be achieved by focusing on four key areas: Firstly, the implementation of major national strategies and the development of security capacity in key areas should be accelerated. Secondly, we should intensify our efforts to promote large-scale equipment replacement and consumer goods trade-in, to drive industrial transformation, upgrading and economic recycling. Thirdly, we should continue to provide affordable homes, renovate urban villages and improve public infrastructure. Last but not least, to stabilize investment and promote growth, we should make good use of local special bonds.