BEIJING, April 17,
2024 /PRNewswire/ -- China's industrial output significantly
boosted the economy in the first quarter of 2024, with value-added
industrial output up 6.1 percent year-on-year, according to data
released Tuesday by the National Bureau of Statistics (NBS).
The surge in industrial output helped push China's GDP growth to 5.3 percent in the first
quarter, surpassing expectations. The sector contributed 37.3
percent of the GDP growth, driving nearly two percentage points of
the overall GDP increase.
The industrial sector showed particular strength in China's economic recovery, with overall
industrial added value increasing by 6 percent in the first
quarter, up 3.1 percentage points from a year earlier, and an
improvement of 0.8 percentage points from the fourth quarter in
2023, showing a rebounding and improving trend, Sheng Laiyun,
deputy director of the NBS, told a press conference on Tuesday.
Experts noted that market demand improvements, macroeconomic
policy support and better inventory and operational conditions in
industrial firms all played critical roles. The high-tech
manufacturing sub-sector was particularly influential, driving
forward both the quality and quantity of industrial output.
As enterprises boosted their inventory and expanded production
in response to rising market demand, the operating rate among
industrial firms increased. High-tech and equipment manufacturing
companies experienced robust expansion, Zhou Maohua, a
macroeconomist at China Everbright Bank, told the Global Times on
Tuesday.
China is gradually entering a
proactive inventory replenishment cycle, with steady industrial
output expansion. This is supported by domestic equipment upgrades
and global market demand, which are expected to steadily enhance
both the scale and quality of industrial development, Zhou
noted.
Among major industrial categories, output of the manufacturing
sector grew by 6.7 percent, with emerging technology manufacturing
emerging as a highlight. According to the NBS, production of
charging poles grew by 41.7 percent, production of 3D printing
equipment saw 40.6 percent growth, and electronic component
production increased by 39.5 percent.
With the development of new quality productive forces,
China has seen rapid growth in
high-tech manufacturing and the industrial sector, and emerging
industries are expected to bring growth to the economy while
optimizing the existing manufacturing industry, Cao Heping, an economist at Peking University,
told the Global Times on Tuesday.
High-tech manufacturing emerged as a significant bright spot in
the overall growth, increasing by 7.5 percent, or by 2.6 percentage
points faster than in the fourth quarter of 2023, NBS data
showed.
The rapid growth of China's
industrial sector is attributed to the development of new quality
productive forces and comprehensive industrial chains.
Industrial output is expected to maintain steady expansion with
continuous structural optimization. "The resurgence in domestic
industrial demand, especially in high-tech manufacturing, along
with improved inventory and profitability levels, are likely to
sustainably boost industrial sector confidence," Zhou
explained.
Growth has been supported by strengthening business confidence,
a revival in both domestic and international demand, and proactive
government policies aimed at revitalizing industrial growth, Sheng
of NBS noted.
Enterprises of different ownerships also showed fast growth in
the sector, with state-owned enterprises seeing a 5.2 percent
increase in added value and 5.4 percent growth in the added value
of private firms.
Economic indicators in March suggest a further recovery, with
the Manufacturing Purchasing Managers' index reaching 50.8, up 1.7
points from February. Sub-indexes, such as production and business
expectations, stood at 55.6, up 1.4 points from the previous
month.
With these supportive factors, China's industrial growth momentum is expected
to continue, Sheng stated, emphasizing the ongoing need for
substantial support to the economy to secure the recovery.
China has published a series of
policies to support the development of its manufacturing and
industrial sectors, including a detailed plan to promote the
large-scale renewal of equipment and trade-ins of consumer
goods.
The plan, issued on March 13 by
the State Council, China's
cabinet, , aims to revitalize the country's equipment and consumer
goods sectors through extensive renewal strategies, driving annual
demand exceeding 5 trillion yuan
($690 billion) for equipment in key
sectors.
On Tuesday, the National Financial Regulatory Administration
issued a document to optimize financial services for the
manufacturing industry, aiding the advancement of new
industrialization.
The document emphasizes financial support for the manufacturing
sector, supporting the security and stability of industrial and
supply chains, technological innovation, structural optimization
and upgrading, as well as the development of industrial
intelligence and green practices.
In general, the economy exceeded expectations in the first
quarter of 2024, with GDP growing 5.3 percent, signaling a strong
start to the year, the NBS reported on Tuesday. This robust
performance is crucial as the country targets full-year growth of
about 5 percent.
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SOURCE Global Times