China’s Economy Grows 5.5% in First Half of 2023

China’s Economy Grows 5.5% in First Half of 2023

On Monday, July 17, China’s National Bureau of Statistics released data indicating that the country’s economy demonstrated robust growth in the first half (H1) of 2023.

Gross domestic product (GDP) reached RMB59.3034 trillion (about USD8.3 trillion), expanding by 5.5% compared to the same period last year, showing an increase of 1 percentage point.

Examining the performance of different sectors, primary industry witnessed a 3.7% year-on-year growth, reaching a value of RMB3.0416 trillion.

Secondary industry, which comprises manufacturing and construction, recorded a growth rate of 4.3%, with a total value added of RMB 23.0682 trillion.

The tertiary industry, encompassing services, continued to be a driving force, growing at a rate of 6.4% and contributing RMB 33.1937 trillion to the overall GDP.

Key Industry Performance

The service industry experienced a 6.4% year-on-year growth rate, surpassing the previous quarter by 1 percentage point. 

Noteworthy sectors within the service industry included accommodation and catering, information transmission, software and information technology services, leasing and business services, finance, and wholesale and retail, which exhibited growth rates of 15.5%, 12.9%, 10.1%, 7.3%, and 6.6% respectively.

Meanwhile, the country’s value-added industrial output experienced a 3.8% year-on-year growth in value added. Within this sector, the mining industry witnessed a growth of 1.7%, the manufacturing industry expanded by 4.2%, and the production and supply of electricity, heat, gas, and water increased by 4.1%. 

Notably, the production of solar cells, new energy vehicles, and industrial personal computers (IPC) and systems experienced substantial growth rates of 54.5%, 35%, and 34.1% respectively.

China’s foreign trade remained robust, with the total import and export value of goods reaching RMB20.1 trillion in H1 2023. 

Despite global challenges, exports rose by 3.7% year-on-year to RMB11.46 trillion, while imports experienced a slight decline of 0.1%, reaching RMB8.64 trillion.

Furthermore, China’s industrial cooperation with countries along the ‘Belt and Road’ initiative continues to show promise, resulting in a significant 9.8% year-on-year growth in import and export trade, accounting for 34.3% of the total import and export value.

China’s import and export trade with members of the Regional Comprehensive Economic Partnership (RCEP) grew by 1.5% year-on-year, making a substantial contribution of over 20% to China’s overall foreign trade growth.

READ MORE: China Q1 GDP Grew by 4.5% Year-on-Year

[Cover Image by Billy Jiang/That’s]

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