China's Economy Maintains Steady Progress Amid External Challenges

Strategic Insights -

China's economy has continued to maintain a steady and progressive development trend in July, with production demand growing, employment and prices generally stable, and new quality productivity cultivated and strengthened. Despite the adverse effects of a complex and volatile external environment and extreme domestic weather, China's major economic indicators performed well in July. The national economy has demonstrated strong resilience and vitality, with the macroeconomic policies in July being effective in supporting stable economic growth.

Key Takeaways:

  • The national economy maintained a stable and progressive development trend in July, with production demand continuing to grow.
  • Industrial production and the service sector saw rapid growth, with the added value of industrial enterprises above designated size increasing by 5.7% year-on-year.
  • The added value of the service industry production index increased by 5.8% year-on-year, driven by increased summer travel.
  • Total retail sales of consumer goods increased by 3.7% year-on-year, with the growth rate of investment slowing but the scale of investment continuing to expand.
  • China's imports and exports of goods continued to grow, with the total import and export of goods increasing by 6.7% year-on-year.
  • Employment and prices remained generally stable, with the national urban surveyed unemployment rate at 5.2% and the national consumer price index (CPI) remaining flat year-on-year.
  • New momentum grew stronger, with the added value of high-tech manufacturing industries above a certain scale increasing by 9.5% year-on-year.
  • The government has taken proactive macroeconomic policies to drive expansion of production demand and promote stable economic growth.
  • The International Monetary Fund has raised its projection for China's economic growth this year by 0.8 percentage points, and several international investment banks have upgraded their ratings on Chinese assets to "overweight".

Statistics:

  • 5.7%: Increases in the added value of industrial enterprises above designated size year-on-year (July).
  • 5.8%: Increases in the added value of the service industry production index year-on-year (July).
  • 3.7%: Increases in total retail sales of consumer goods year-on-year (July).
  • 5.2%: National urban surveyed unemployment rate (July).
  • 6.7%: Increases in the total import and export of goods year-on-year (July).
  • 9.5%: Increases in the added value of high-tech manufacturing industries above a certain scale year-on-year (January-July).
  • 30.4%: Increases in retail sales of household appliances year-on-year (January-July), driven by the old-for-new consumer goods program.
  • 22.9%: Increases in retail sales of audio-visual equipment and communication equipment year-on-year (January-July), driven by the old-for-new consumer goods program.
  • 9.9%: Increases in the added value of the equipment manufacturing industry year-on-year (January-July), driven by the "double" construction and large-scale equipment renewal policies.

Sources:

  • Xinhua News Agency
  • State Council Information Office
  • National Bureau of Statistics of China
  • International Monetary Fund