Title: China’s Fourth Quarter GDP Growth Falls Below Expectations, Economy Shifts Towards Manufacturing and Services
Word Count: 387
China’s economic growth in the fourth quarter of 2023 fell slightly below expectations, with a GDP growth rate of 5.2%, compared to the forecasted 5.3%. This slower growth was reflected in the full-year GDP figure as well, indicating an overall growth rate of 5.2%.
One of the key factors impacting the economy is the decline in investment in the property sector. As a result, the Chinese economy has become more dependent on the manufacturing and service sectors. This shift has both positive and negative implications for the country’s economic stability.
Another concerning aspect is the high unemployment rate among young people aged 16 to 24, which stands at 14.9% when excluding those still in school. Additionally, the urban unemployment rate for December was 5.1%, reflecting the challenges faced by Chinese workers in finding stable employment.
Retail sales in December also failed to meet expectations, growing by 7.4% instead of the anticipated 8% growth. However, industrial production exceeded forecasts with a rise of 6.8%. This indicates a discrepancy in the performance of different sectors within the economy.
Despite these challenges, there are some positive signs. Fixed asset investment for 2023 increased by 3%, slightly higher than the predicted 2.9% increase. Infrastructure investment saw a notable rise of 5.9%, while manufacturing investment grew by 6.5%.
The growing prominence of e-commerce was evident in the increase of online retail sales, which rose by 8.4%, accounting for nearly 28% of overall retail sales. Furthermore, retail sales in services experienced a substantial surge of 20% in 2023 compared to the previous year.
In terms of consumer trends, jewelry sales experienced a significant increase of 29% in December, demonstrating an increased demand for luxury goods. Purchases of clothes and shoes also grew by 26%. However, sales of daily necessities, medicine, cultural and office products, and construction-related materials declined during the same period.
In a separate demographic development, China’s population decreased by more than two million individuals, reaching a total of 1.41 billion in 2023.
The Chinese government recognizes the need to enhance economic vitality and mitigate risks in order to ensure long-term economic recovery and growth. This evolving situation requires continuous monitoring, as updates are expected to further shape the economic landscape.
Note: This is a developing story, and further updates can be anticipated.
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