BEIJING: Chinese Foreign Ministry said that several international institutions have increased their economic growth forecasts for China, reflecting the international community’s confidence in the Chinese economy.
“We have noted the World Bank’s report and observed that the International Monetary Fund has once again raised its forecast for China’s economic growth this year by 0.4 percentage points, compared to its April projection,” said Chinese Foreign Ministry spokesperson Lin Jian during a press conference on Thursday.
The World Bank’s latest Global Economic Prospects report has updated China’s economic growth forecast for 2024, raising it from 4.5 percent to 4.8 percent.
The World Bank report highlighted stronger-than-expected economic activity in China, particularly in exports, said Lin Jian. According to the General Administration of Customs, China’s imports and exports of goods increased by 6.3 percent year on year in the first five months of this year.
“As the world’s manufacturing powerhouse providing cost-effective products to global markets and as a major consumer driving demand for products from other countries, China has played a positive and significant role,” said Lin. “As the world’s second-largest economy and a vital part of the global economy, China’s contribution to world economic growth has remained substantial for a long time.”
The sustained and steady growth of the Chinese economy has significantly contributed to global economic recovery, according to Lin Jian. Research by the International Monetary Fund indicates that every one percentage point of growth in Chinese economy boosts output levels in other economies by an average of 0.3 percentage points.
“Despite the complex and volatile international environment, the Chinese economy is confident and robust enough to continue progressing,” Lin said.
“We are prepared to share the benefits and opportunities of high-quality development with the rest of the world and collaborate to promote sustained global modernization,” he added.
Meanwhile, China saw steady economic growth in July, as indicated by official data released by the National Bureau of Statistics (NBS) Thursday.
China’s value-added industrial output, an important economic indicator, expanded 5.1 percent year on year in July. On a monthly basis, the industrial output edged up 0.35 percent in July from the previous month.
Addressing a press conference, NBS spokesperson Liu Aihua said that 80 percent of industries and nearly 60 percent of products registered year-on-year increases.
The service production index increased by 4.8 percent year on year in July, quickening by 0.1 percentage points from the previous month.
In addition, China’s retail sales of consumer goods went up 2.7 percent year on year to nearly 3.78 trillion yuan ($529 billion).
Services consumption stood out, said Bruce Pang, chief economist of JLL Greater China. He added that the growth rate of consumption, after excluding automobile consumption, was faster than that of the same period last year, effectively stabilizing the economy after a slight slowdown in investment growth.
China’s fixed-asset investment rose 3.6 percent year on year to reach about 28.76 trillion yuan; while foreign trade reached 3.68 trillion yuan, reflecting a 6.5 percent year-on-year increase.
The scale of investment in fixed assets has expanded, the import and export of goods have grown rapidly, and the trade structure has continued to be optimized, said Liu.
