Prospects of China's economy remain positive, despite fluctuations seen in Q2 this year: NBS

While there are fluctuations in the growth trajectory of China’s economy in the second quarter this year, the trend is positive, said a spokesperson from the National Bureau of Statistics (NBS) on Monday.

Generally speaking, the favorable factors for development in China exceed the unfavorable factors, and the economic growth trend will remain stable and positive in the long term, the spokesperson said.

The remarks came after China’s GDP for the second quarter expanded by 4.7 percent year-on-year, a slight slowdown from the 5.3-percent growth seen in the first quarter.

The dip in GDP growth in the second quarter was affected by some short-term factors such as extreme weather and floods. It also reflects the increasing challenges in current economic operation, including inadequate domestic market demand and clogged domestic circulation, the spokesperson noted.

Despite the challenges posed by external uncertainties and domestic structural adjustment, China’s economy has withstood pressure and operated relatively smoothly, the spokesperson said.

In the second quarter, the gross economic output exceeded 32 trillion yuan ($4.40 trillion), and its industrial added value and total import and export of goods both surpassed 10 trillion yuan.

Looking ahead to the second half of the year, favorable conditions for China's development still outweigh the negative factors, the spokesperson said, adding that the summer grain and vegetable oil harvest , improving external demand, and the potential for growth in market demand will provide a solid foundation for economic growth.

The industrial structure upgrade, implementation of large-scale equipment renewal, consumer products trade-ins, and issuance of special government bonds, will further boost economic growth and enhance operational vitality, the spokesperson noted.

The Third Plenary Session of the 20th CPC Central Committee is expected to come out with a new roadmap on comprehensively deepening the reform and advancing Chinese-style modernization, the spokesperson said.

Since the 18th CPC National Congress, China's economy has overcome various challenges and steadily built up its economic strength.

From 2013 to 2023, the Chinese economy has achieved an average annual growth rate of 6.1 percent, ranking among the leaders in the world, and contributing over 30 percent to global economic growth each year.

Last year, the country’s total economic output exceeded 126 trillion yuan, maintaining the second position in all economies, and the country’s per capita GDP has surpassed the $12,000 for three consecutive years.

Also, employment and prices have remained largely stable, with over 140 million new urban jobs created from 2013 to 2023. The international balance of payments was kept generally stable, with foreign exchange reserves hovering above $3.2 trillion in recent years.