On July 15th, data released by the National Bureau of Statistics (NBS) showed that China's gross domestic product (GDP) for the first half of this year reached 69.5704 trillion yuan. Calculated at constant prices, this represents a year-on-year growth of 4.7%, with the growth rate falling within the full-year target range.

Notably, emerging growth drivers represented by high-end manufacturing, the digital economy, and modern services contributed over forty percent to the economic expansion.

H1 GDP Records Largest Increment in Five Years

The year-on-year GDP growth for the first half of the year was 4.7%. By quarter, GDP grew 5.0% year-on-year in the first quarter and 4.3% in the second quarter. Sequentially, GDP increased by 0.9% in the second quarter.

At a State Council Information Office press conference, an NBS official stated that the Chinese economy has maintained stable operation within a reasonable range despite pressure. The H1 GDP increment of 3.6 trillion yuan compared to the same period last year marks the largest increase for the same period in five years. Achieving 4.7% growth is a significant accomplishment for an economy of China's immense scale.

An analyst from the National Information Center noted that for a super-sized economy like China's, stability remains the most fundamental positive factor and its most prominent developmental advantage.

A chief economist from a major securities firm commented that the H1 economic growth aligns with the full-year expectations. The nominal GDP growth of 5.9% year-on-year in Q2, up 1 percentage point from Q1, and the return of the GDP deflator to positive territory reflect the contribution of prices to economic growth.

Addressing the fluctuation in Q2 growth, the NBS official emphasized that the slowdown compared to Q1 was primarily due to temporary factors and external influences, while the fundamental trend of stable and quality-oriented economic development remains unchanged.

While the global economic outlook has shifted this year, with some international institutions expecting slower growth across major economies in Q2, the International Monetary Fund (IMF) recently revised its 2024 global growth forecast down to 3.0% but raised its projection for China's full-year growth by 0.2 percentage points.

An economist from a domestic rating agency anticipates that GDP growth will rebound to around 4.6% in the third quarter and is expected to accelerate further in the fourth, suggesting a V-shaped recovery pattern for the full year.

Emerging Drivers Account for Over 40% of Growth Contribution

The contribution of new growth drivers exceeding forty percent is a particularly notable feature of H1 economic performance. The NBS official highlighted that the trend towards new and high-quality development is distinct and accelerating.

On the production side, China's competitive edge in sectors like new energy, new materials, and green equipment is becoming increasingly prominent, fostering new economic growth points. Output of products such as nuclear power units and lithium batteries saw substantial increases, while green sub-sectors within traditional industries performed strongly, with both old and new industries jointly releasing fresh momentum.

The "Lighthouse Factory" designation represents a global benchmark for digital and intelligent manufacturing transformation. In late June, the World Economic Forum announced its latest list of Lighthouse Factories, with half of the 16 new global additions coming from China.

An NBS spokesperson stated that China now firmly holds the top global position in the number of Lighthouse Factories, demonstrating the significant results of artificial intelligence and digital technology in empowering manufacturing transformation.

Another impressive set of figures shows that in the first half, the value-added of industrial enterprises designated as "Little Giants" – specialized, sophisticated, and innovative firms above a designated size – grew by 10.4% year-on-year. A large number of these "Little Giant" enterprises are effectively addressing supply chain gaps while injecting new vitality into economic development.

The upgrading needs of the manufacturing sector have further driven the expansion of producer services. In H1, the value-added of information transmission, software and information technology services, as well as leasing and business services, grew by over 10% each. These sectors contributed nearly a quarter to economic growth, continuously unlocking the growth potential of modern services.

The securities firm's chief economist forecasts that industrial production will maintain its resilience for the full year, with high-tech industries and equipment manufacturing continuing to play a leading role.

Vitality of New Consumption Growth Points Emerges

In the first half, total retail sales of consumer goods and services grew by 2.7% year-on-year. In June, total retail sales of consumer goods shifted from a decline in May to a year-on-year increase of 1.0%, indicating a recovery in the consumer market.

Smart, green, and healthy consumption is gradually becoming a new trend. Data shows that in H1, retail sales of wearable smart devices, including smart glasses, more than doubled, while retail sales of high-efficiency home appliances grew over 30%. In June, the retail penetration rate of new energy vehicles reached 62.8%, exceeding 60% for the third consecutive month.

Innovative retail formats catering to quality consumption and digital convenience are flourishing. Retail sales at membership-based warehouse stores and unmanned stores above a designated size both grew over 25%, and instant retail transaction volume achieved double-digit growth.

Additionally, models integrating performances with consumption, such as concerts, music festivals, and sporting events, continue to gain popularity. Relevant data indicates that in H1, sales revenue from cultural performances and immersive museum experiences grew by 28.3% and 24.6%, respectively.

Inbound consumption is also warming up. In the first half, approximately 17.82 million foreign nationals entered China under visa-free policies, a year-on-year increase of 30.6%. This year marks the fifth year of operation for the China-Laos Railway. Statistics show that as of June 30th, the Mohan Railway Port on this line had handled over 190,000 inbound and outbound passengers from 89 countries and regions this year, a year-on-year increase exceeding 30%.

A tourism company executive in Yunnan noted a noticeable change in social media content, observing an increase in posts related to Laotians working or residing in Yunnan.

Recently, the State Council officially approved the "15th Five-Year Plan for Expanding Consumption." The NBS official expressed that with the deepening development of a unified national market, an increase in high-quality consumer supply, and the effective implementation of policies to boost consumption, further expansion and quality improvement in consumption are anticipated.