AI Vibes | China's GDP expands 5.2 pct in 2023: Key takeaways

China's gross domestic product (GDP) grew by 5.2 percent year on year to a record high of 126.06 trillion yuan ($17.71 trillion) in 2023, according to data released by the National Bureau of Statistics (NBS) on Jan. 17. On a quarterly basis, the Chinese economy increased by 4.5 percent year on year in the first quarter of 2023, 6.3 percent in the second quarter, 4.9 percent in the third quarter, and 5.2 percent in the fourth quarter of 2023. This demonstrates a pattern of being low early in the year, peaking in the middle, and stabilizing later, reinforcing the upward trend.

This video grab shows China's gross domestic product (GDP) grew by 5.2 percent year on year to a record high of 126.06 trillion yuan in 2023.

What else is worth noting regarding China's economic performance in 2023?

First, there was a positive rebound. In terms of economic growth, China's GDP surpassed 126 trillion yuan last year, posting a growth rate 2.2 percentage points higher than that of 2022. Regarding employment, the situation generally improved, with the surveyed urban unemployment rate decreasing by 0.4 of a percentage point from 2022. The employment situation for rural migrant workers showed an obvious trajectory of improvement. In terms of prices, overall inflation remained moderate, with the consumer price index (CPI) rising by 0.2 percent and core CPI rising by 0.7 percent throughout the year. Regarding international balance, goods exports grew by 0.6 percent, and foreign exchange reserves exceeded $3.2 trillion by the end of the year.

This video grab shows the Chinese economy increased by 4.5 percent year on year in the first quarter of 2023, 6.3 percent in the second quarter, 4.9 percent in the third quarter, and 5.2 percent in the fourth quarter of 2023.

Second, there was quality improvement. China adhered to its innovation-driven development strategy, steadily increasing innovation investment. Preliminary estimates show the country invested 3.3 trillion yuan in research and development (R&D) in 2023. This R&D spending represented 2.64 percent of GDP, a 0.08 percentage point rise from the previous year. The economic structure was also optimized and upgraded, with the service industry and consumption increasingly becoming the main drivers of economic growth.

Third, China's economic performance was impressive in 2023. With a growth rate of 5.2 percent, it exceeded the projected global average of 3 percent, surpassing most major economies. China's contribution to global GDP growth is expected to exceed over 30 percent in 2023, solidifying its position as the world's leading growth engine. Despite a global trade downturn, China's exports increased last year, maintaining a stable share in the global market.

Fourth, China faced an arduous journey in 2023. The external environment was increasingly complex, serious, and uncertain, marked by the sluggish global economy, evolving international dynamics, and frequent geopolitical conflicts. Domestically, China contended with several cyclical and structural problems, along with frequent natural disasters. Therefore, it's truly remarkable that China achieved such developmental accomplishments in light of these complexities.

(Ye Jingyi, as an intern, also contributed to this video.)