Latest NBS data shows Chinese economy gaining new momentum in first two months of 2024

China's economy continued to gain momentum, getting off to a robust start in the first two months of 2024, with industrial output, fixed-investment and retail sales all posting better-than-expected results, official data showed on Monday.

With the government's intensified stimulus taking effect, the economy continued to recover and turn for the better in the first two months of the year, Liu Aihua, a spokesperson with the National Bureau of Statistics (NBS) said at a press conference on Monday.

In January and February, the total value-added of the industrial enterprises above the designated size grew by 7 percent year-on-year, or 0.2 percentage points faster than that of December 2023, according to data released by the NBS on Monday.

During the two months, gross retail sales reached 8,130.7 billion yuan ($1,129.5 billion), up by 5.5 percent year-on-year, in which, online retail sales reached 2,153.5 billion yuan, up by 15.3 percent year-on-year.

Fixed assets investment in the first two months reached 5,084.7 billion yuan, up by 4.2 percent year-on-year, 1.2 percentage points higher than last year's growth.

"The better-than-expected macro-economic indicators reflect that the country's GDP growth rate in the first quarter of this year will be higher than 5 percent, and that the economy is bottoming out after facing constant growth pressure seen in the past 10 years or so," Cao Heping, an economist at Peking University, told the Global Times on Monday.

During the "two sessions" early this month, China set a growth target of around 5 percent for its economy in 2024, which exceeds expectations of some international institutions, demonstrating that the country's policymakers remain confident in maintaining stable growth in the world's second-largest economy despite downward pressure both at home and abroad.

Cao said that he has full confidence in the country's realizing this year's GDP growth target of around 5 percent, though more efforts are needed to focus on high-quality development.

He said that authorities should continue to promote the transition in overall economic structure, focus on developing new quality productive forces, like new industries to be propelled by AI.

In the first two months this year, China's urban surveyed unemployment rate averaged at 5.3 percent.

"We should be aware that the external environment is becoming more complex, severe and uncertain, while domestic effective market demand remains insufficient and the foundation for economic recovery and growth needs to be further consolidated," Liu said.

"We must effectively boost economic vitality, prevent and defuse risks, improve public expectations, constantly consolidate and build the momentum of economic recovery and growth and continue to effectively pursue higher-quality economic growth and appropriately increase economic output," Liu said.