China’s recent economic updates have left experts disappointed as the country’s fourth-quarter GDP failed to meet expectations. However, there is some positive news as the government resumes reporting on the unemployment rate for young people, offering insights into the employment situation for this age group.
Youth Unemployment Rate Shows Signs of Improvement
The National Bureau of Statistics revealed that the unemployment rate for young people aged 16 to 24, excluding those still in school, stands at 14.9%. This data comes after the bureau temporarily suspended the release of this information, stating the need to reassess calculation methods. It is worth noting that the unemployment rate had previously spiked to record highs above 20%.
Fourth-Quarter GDP Figures Fall Slightly Short
China’s National Bureau of Statistics reported a fourth-quarter GDP growth rate of 5.2%, slightly below the 5.3% forecasted in a Reuters poll. While missing expectations, this still brings the overall growth rate for 2023 to a respectable 5.2%.
Mixed Results in Retail Sales and Industrial Production
December retail sales saw a growth of 7.4% compared to the previous year, falling short of the anticipated 8% growth. On the other hand, industrial production exceeded expectations, rising by 6.8% year-on-year, beating the forecasted 6.6% growth.
Observations on Fixed Asset Investment
Fixed asset investment for 2023 saw a modest increase of 3%, slightly higher than the predicted 2.9% rise. Within this category, real estate experienced a decline of 9.6%, whereas infrastructure investment increased by 5.9% and manufacturing investment grew by 6.5%.
Online Retail and Services Show Resilience
Despite challenges, online retail sales of physical goods rose by 8.4% and accounted for nearly 28% of overall retail sales. The statistics bureau also reported a 20% surge in retail sales for services in 2023 compared to the previous year, showcasing the sector’s growth.
Shifting Consumer Trends and Population Changes
December witnessed a significant surge in jewelry sales, with a 29% increase, and clothing and shoe purchases rose by 26%. However, sales of daily necessities, medicine, cultural and office products, as well as construction-related materials, saw a decline. It is worth mentioning that December 2022 saw the abrupt end of Covid-19 controls, leading to a rush in medicine purchases due to widespread illness that month.
Additionally, China’s population experienced a decline of over 2 million people, reaching 1.41 billion in 2023 from the previous year. This follows a decrease of 850,000 people in 2022 compared to 2021.
The Future Outlook
In response to these findings, the Bureau emphasized the need to enhance economic vitality, manage risks, and improve social expectations. They aim to consolidate and boost economic recovery and growth, striving to upgrade both the quality and scale of the national economy.
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Source link: NBC News