China’s GDP in 2023 Expands 5.2%


China’s GDP in 2023 beat executive enlargement goals because of a robust efficiency within the ultimate 3 quarters. Knowledge launched from the statistics bureau display a rebound within the business and products and services sectors, in addition to a resurge in intake in the second one quarter. Weaker spaces of the economic system, akin to overseas business and personal funding, additionally confirmed indicators of growth within the fourth quarter. We have a look at China’s full-year financial signs and speak about the rustic’s construction trajectory within the post-COVID period.

China’s GDP in 2023 has crushed goals, rising at a charge of five.2 % year-on-year at consistent costs, attaining a complete of RMB 126.06 trillion (US$17.52 trillion) in step with estimates from China’s Nationwide Bureau of Statistics (NBS).

Financial signs launched by way of the NBS display a yr of robust enlargement, with core segments of the economic system, akin to business, production, products and services, and intake indicating a robust restoration following the lifting of COVID-19 restrictions in the beginning of the yr.

Weaker spaces of the economic system have additionally begun to turn indicators of growth on the finish of the yr, with the expansion in overseas business and personal sector funding accelerating in December 2023.

China’s economic system and society in 2023 at a look:

  • GDP: RMB 126.06 trillion (US$17.52 trillion); +5.2% y/y
  • Retail gross sales: RMB 47.15 trillion (US$6.55 trillion); +7.2%
  • Business added worth*: +4.6%
  • Services and products added worth: +5.8%
  • Overseas business: RMB 41.76 trillion (US$5.80 trillion): +0.2%
  • Mounted asset funding: RMB 50.30 trillion (US$6.99 trillion); +3.0%
  • Inhabitants: 1.40967 billion; -2.08 million.
  • Disposable source of revenue in line with capita: RMB 39,218 (US$5,451); +6.1%
  • Unemployment charge: 5.2%;
  • CPI: +0.2%

*Added worth of businesses with an annual major industry source of revenue of over RMB 20 million (US$2.8 million).

Financial enlargement in 2023

Overall GDP within the fourth quarter larger by way of 5.2 % year-on-year to achieve RMB 34.79 trillion (US$4.88 trillion). On a quarterly foundation, GDP grew by way of 1 % within the fourth quarter.

The added worth of China’s tertiary sector (products and services) recorded the perfect enlargement charge a number of the 3 business segments, up 5.8 % year-on-year to achieve RMB 68.8 trillion (US$9.65 trillion). In the meantime, the added worth of the secondary sector (business and production) grew by way of 4.7 % and the main sector (agriculture and uncooked subject matter extraction) larger by way of 4.1 % from 2022.

China’s disposable source of revenue in line with capita additionally noticed wholesome enlargement in 2023, attaining RMB 39,218 (US$5,451), an actual building up of 6.1 % after accounting for value elements.

Wages accounted for 56.2 % of disposable source of revenue, with general in line with capita salary source of revenue expanding by way of 7.1 % to achieve RMB 22,053 (US$3,093). The median in line with capita disposable source of revenue was once RMB 33,036, an building up of five.3 % year-on-year.

Business and production

Over the entire of 2023, the added worth of business above the designated dimension (corporations with an annual major industry source of revenue of over RMB 20 million (US$2.8 million) larger by way of 4.6 % year-on-year. In December 2023, business added worth noticed an actual building up of 6.8 % year-on-year.

The added worth of the apparatus production business larger by way of 6.8 % year-on-year, 2.2 share issues sooner than the whole business added worth enlargement charge. In the meantime, the added worth of the mining business larger by way of 2.3 % year-on-year, the producing business larger by way of 5 % year-on-year, and the electrical energy, heating, fuel, and water manufacturing and provide business larger by way of 4.3 % year-on-year.

Renewable energy-related merchandise had a in particular excellent yr, with a number of product segments, akin to sun cells, new calories cars, and generator units (energy technology apparatus), experiencing double-digit enlargement:

  • The added worth of sun cells larger by way of 54 % year-on-year,
  • The added worth of NEVs larger by way of 30.3 % year-on-year; and
  • The added worth of generator units larger by way of 28.5 % year-on-year.

The normal production segments of automobile and electronics manufacturing persisted to care for sturdy enlargement right through the yr, in spite of a slight deceleration in December.

State-owned enterprises (SOE) and joint-stock enterprises skilled the most powerful enlargement when it comes to added worth, whilst personal and foreign-invested corporations (FIEs) skilled slower enlargement:

  • SOEs larger by way of 5 % year-on-year;
  • Joint-stock enterprises larger by way of 5.3 % year-on-year;
  • Overseas, Hong Kong, Macao, and Taiwan-invested enterprises larger by way of 1.4 % year-on-year; and
  • Personal enterprises larger by way of 3.1 % year-on-year.

On the other hand, having a look at December, we will see that process amongst FIEs and personal corporations picked up on the finish of the yr:

  • The added worth of overseas, Hong Kong, Macao, and Taiwan-invested enterprises larger by way of 6.9 % year-on-year;
  • The added worth of personal enterprises larger by way of 5.4 % year-on-year.

Services and products

The yearly added worth of the carrier business larger by way of 5.8 % in 2023 from the former yr.

Carrier sectors that have been strongly impacted by way of the COVID-19 pandemic started to get well in earnest in 2023. The added worth of the hospitality and catering business, for example, grew 14.5 % year-on-year because of the lifting of COVID-era restrictions and a low base impact from 2022.

The added worth of a number of different core carrier sectors additionally skilled fast enlargement:

  • Data transmission, device, and knowledge era (IT) products and services grew 11.9 % year-on-year;
  • Leasing and industry products and services grew 9.3 % year-on-year;
  • Transportation, warehousing, and postal products and services grew 8 % year-on-year;
  • Monetary products and services grew 6.8 % year-on-year; and
  • Wholesale and retail products and services larger by way of 6.2 % year-on-year.

Between January and November 2023, the running source of revenue of carrier business enterprises above the designated dimension larger by way of 8.5 % year-on-year. Amongst them, the running source of revenue of the tradition, sports activities, and leisure business, knowledge transmission, device, and IT products and services, and leasing and industry products and services larger by way of 18.9 %, 12.8 %, and 12.7 % respectively.

Intake and inflation

The whole retail gross sales of client items in 2023 reached RMB 47.15 trillion (US$6.6 trillion), an building up of seven.2 % over the former yr. In December 2023, overall retail gross sales reached RMB 4.36 trillion (US$611.6 billion), a year-on-year building up of seven.4 %.

Products gross sales, in the meantime, larger by way of 5.8 % year-on-year in December to RMB 41.86 trillion (US$5.87 trillion). In December, products gross sales grew by way of 4.8 % year-on-year, decelerating from 8 % enlargement in November.

Products gross sales in brick-and-mortar shops have rebounded in 2023, benefitting from the go back on in-person buying groceries. Products gross sales at division retail outlets, comfort retail outlets, distinctiveness retail outlets, and branded retail outlets grew by way of 8.8 %, 7.5 %, 4.9 %, and four.5 % respectively when compared with the former yr.

Products gross sales of supermarkets, alternatively, diminished by way of 0.4 % year-on-year, in spite of the lifting of COVID-19 restrictions. By means of comparability, on-line gross sales of meals grew by way of 10.8 % year-on-year in 2023, suggesting that festival from on-line outlets is starting to chunk.

To find Industry Beef up

In spite of the go back of in-person buying groceries, the expansion of on-line products gross sales nonetheless outstripped gross sales at bodily retail outlets. Overall on-line products gross sales in 2023 reached RMB 15.44 trillion (US$2.2 trillion), an building up of eleven % over the former yr. Amongst them, on-line products gross sales of bodily items reached a complete worth of RMB 13.02 trillion (US$1.8 trillion), up 8.4 % from 2022, accounting for 27.6 % of the whole retail gross sales of client items. On-line gross sales of bodily items, meals, clothes, and family items larger by way of 11.2 %, 10.8 %, and seven.1 % year-on-year respectively.

In spite of sturdy retail gross sales, inflation remained low in China over the yr, with the Client Value Index (CPI) emerging by way of simply 0.2 % year-on-year, indicating susceptible call for.

Falling beef costs – essentially the most closely weighted product within the CPI meals basket – might also assist to provide an explanation for the low inflation recorded in 2023. Following years of sky-high costs because of outbreaks of African swine fever amongst China’s hogs, oversupply in 2023 led costs to fall 13.6 %.

Quite a lot of merchandise recorded sluggish CPI enlargement and even declines in 2023:

  • Meals, tobacco, and alcohol costs larger by way of 0.3 %;
  • Clothes costs rose by way of 1 %;
  • Housing costs remained unchanged;
  • Family items and products and services costs larger by way of 0.1 %
  • Transportation and verbal exchange costs fell by way of 2.3 %
  • Training, tradition, and leisure costs rose by way of 2 %
  • Healthcare costs larger by way of 1.1 %; and
  • Different items and products and services costs rose by way of 3.2 %.


Mounted asset funding (FAI) in 2023 reached RMB 50.3 trillion (US$7.1 trillion), up 3 % over the former yr.

Of this, FAI within the production business larger by way of 6.5 % year-on-year, whilst infrastructure funding (except electrical energy, heating, fuel, and water manufacturing and provide industries) larger by way of 5.9 %.

To find Industry Beef up

FAI within the secondary industries as a complete noticed powerful enlargement of 9 % from the former yr, attaining RMB16.2 trillion (US$2.3 trillion). On the other hand, tertiary business funding grew simply 0.4 % year-on-year to achieve RMB 33.1 trillion (US$4.6 trillion).

Personal FAI in 2023 shriveled by way of 0.4 % year-on-year, reflecting the sluggish restoration of the non-public sector. In spite of this, the speed of decline narrowed by way of 0.1 share issues within the January to December duration from the January to November duration. FAI by way of SOEs, alternatively, grew by way of 6.4 % year-on-year.

In the meantime, FAI by way of home enterprises larger by way of 3.2 % in comparison to the former yr, whilst FAI by way of overseas enterprises larger by way of 0.6 % and FAI by way of Hong Kong, Macao, and Taiwan-invested industry enterprises diminished by way of 2.7 % year-on-year.

Overseas business

China’s overseas business has skilled meager enlargement in 2023. Whilst the yr were given off to a robust get started, with overall business quantity emerging by way of 4.8 % year-on-year within the first quarter, the full-year enlargement slowed to only 0.2 %. Overall overseas business reached RMB 41.76 trillion (US$5.86 trillion), with exports rising 0.6 % to RMB 23.77 trillion (US$3.3 trillion), and imports lowering by way of 0.3 % to RMB 18 trillion (US$2.5 trillion).

Prime inflation and a cost-of-living disaster in key in a foreign country markets – above all, the USA and Europe – have lowered call for for imported Chinese language items in 2023, whilst home call for for imported items has remained lackluster.

On the other hand, the December figures point out that issues might strengthen for the simpler in 2024. The whole import and export quantity in December larger by way of 2.8 % year-on-year, with exports emerging 3.8 % and imports emerging 1.6 %.

Business with the EU and the USA additionally confirmed indicators of growth within the fourth quarter, in step with officers from China’s Normal Management of Customs. Annual imports and exports with the EU and US reached RMB 5.5 trillion (US$771.5 billion) and RMB 4.67 trillion (US$655 billion), accounting for 13.2 % and 11.2 % respectively. In the meantime, bilateral business with Latin The usa and Africa larger by way of 6.8 % and seven.1 % year-on-year respectively.

Additionally, personal enterprises seem to have bucked the craze in 2023, recording a enlargement charge of 6.3 % from 2022. Personal corporations additionally accounted for 53.5 % of overall imports and exports, an building up of three.1 share issues from the former yr.

The overseas business figures additionally display that China continues to dominate in positive key export sectors, particularly mechanical and electric merchandise, in addition to new applied sciences akin to NEVs.

Exports of equipment and digital merchandise accounted accounting for 58.6 % of the whole export worth, whilst exports of labor-intensive merchandise accounted for 17.3 %.

Inside the box of equipment and digital merchandise, the export of electrical passenger vehicles, lithium-ion batteries, and sun cells reached a blended export worth of RMB 1.06 trillion (US$148.7 billion), breaking the trillion-yuan mark for the primary time and rising 29.9 % from 2022. Exports of ships and family home equipment additionally larger by way of 35.4 % and 9.9 % year-on-year respectively.

2024 outlook

At the again of robust enlargement within the latter 3 quarters of 2023, China beat its personal enlargement goal of “round 5 %” and met maximum third-party projections. This enlargement has been basically pushed by way of the sturdy efficiency of business and repair sectors, in addition to public funding.

Similar Studying

Additionally, it’s vital that weaker spaces of the economic system have persisted to strengthen within the ultimate few months of the yr. The route reversal of overseas business in November and December, for example, might sign additional growth going into 2024.

Additionally, following a sluggish restoration within the first part of the yr, the federal government took steps to spice up the efficiency and self belief of personal corporations and FIEs. Certain knowledge from November and December signifies that those efforts are paying off and might proceed to strengthen in 2024.

Many analysts agree that keeping up this degree of enlargement in 2024 may not be simple, no longer least since the sturdy efficiency of 2023 will create a excessive base impact for financial signs within the coming yr (conversely, 2023 numbers benefitted from the decrease numbers in 2022).

As such, the federal government is predicted to stay increasing make stronger for public infrastructure funding thru using quite a lot of coverage and monetary gear to stimulate financial process. Additional efforts also are anticipated to spice up the non-public sector, draw in extra overseas funding, and extend home call for.

China’s GDP enlargement goal along side overarching financial goals and coverage route for 2024 shall be decided within the Two Periods in March. The federal government has additionally equipped a roadmap for construction all through the Central Financial Paintings Convention held in December 2023.

About Us

China Briefing is written and produced by way of Dezan Shira & Buddies. The observe assists overseas buyers into China and has performed so since 1992 thru places of work in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please touch the company for help in China at

Dezan Shira & Buddies has places of work in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Dubai (UAE). We even have spouse corporations aiding overseas buyers in The Philippines, Malaysia, Thailand, and Bangladesh.




Please enter your comment!
Please enter your name here

Share post:


More like this