China fell short of fourth-quarter GDP estimates on Wednesday while resuming the release of youth unemployment rate data.
According to China’s National Bureau of Statistics, GDP for the final quarter of 2023 increased by 5.2%, slightly below the 5.3% forecast in a Reuters poll. The full-year GDP growth also stood at 5.2%.
Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, noted, “With investment in the property sector falling, the economy is more dependent on the manufacturing sector and service sector. This transition will take time to be accomplished. The key question in the market is when the transition in the property sector will finish.”
Excluding those still in school, the unemployment rate for individuals aged 16 to 24 was 14.9%, while the December rate in cities reached 5.1%. The release of this age group’s unemployment rate had been temporarily suspended in the summer for reassessing calculation methods.
Retail sales experienced a 7.4% growth in December compared to the previous year, missing expectations for an 8% increase. Meanwhile, industrial production rose by 6.8%, surpassing forecasts for 6.6% growth.
For 2023, fixed asset investment increased by 3%, slightly above the predicted 2.9% increase. Real estate investment, however, declined by 9.6%, while infrastructure investment rose by 5.9%, and manufacturing investment grew by 6.5%.
Online retail sales of physical goods showed an 8.4% increase, constituting nearly 28% of overall retail sales. The statistics bureau highlighted a 20% surge in retail sales in services for 2023 compared to the previous year.
In December, jewelry sales witnessed a 29% surge, and purchases of clothes and shoes increased by 26%. However, sales of daily necessities, medicine, cultural and office products, as well as construction-related materials, declined in the same month.
The statistics bureau reported a decline in China’s population by over 2 million people to 1.41 billion in 2023 compared to the previous year. The population had already decreased by 850,000 people in 2022 from 2021.
The bureau emphasized the need to enhance economic vitality, mitigate risks, improve social expectations, and consolidate economic recovery and growth.
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