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17 Apr 2024

International Economy

China’s economy grew more than expected at 5.3% YoY in 1Q24, driven by the high-tech industry; full-year growth for 2024 projected at 4.5% YoY (Business Brief No.4054)


    • China’s economy in 1Q24 was mainly boosted by a surge in high-tech manufacturing industry, while exports showed limited recovery and domestic consumption saw slower growth compared to the previous year.
    • In 2024, domestic spending, particularly in the service sector and investment in technology-related industries, along with further monetary policy easing and targeted fiscal measures, will be key drivers of the Chinese economy. However, significant risks remain, including low consumer confidence and business sentiment, pressure from the troubled property sector, as well as geopolitical tensions and excess production capacity that could impact the country’s exports.
    • Amid the challenges facing China’s economy, greater limitations to monetary policy easing if the US Federal Reserve delays its policy rate cuts, and no significant increase in the fiscal budget compared to the previous year, KResearch projects that the Chinese economy in the remaining quarters of this year will grow by less than 4.5 percent YoY, particularly in the second quarter due to pressure from the high base effect. As a result, China’s 2024 full-year economic growth is expected to reach 4.5 percent YoY.

International Economy