China seen as largest engine for world economic growth

Published: February 26,2024

Photo shows a view of Nansha Port in Guangzhou, South China’s Guangdong province. [Photo provided to chinadaily.com.cn]

China’s GDP exceeded 126 trillion yuan ($17.52 trillion) in 2023, up 5.2 percent over the previous year, making it the largest engine of global growth. The International Monetary Fund recently raised its growth forecast for the Chinese economy.

Optimism about China’s economic growth has also boosted confidence in regional growth. As China’s growth is likely to exceed expectations, emerging Asian economies as a whole are projected by the IMF to grow by 5.2 percent this year, up 0.4 percentage points from the forecast in October. Goldman Sachs and UBS, too, have said the momentum of recovery will be sustained in China’s consumption and service sectors this year.

According to the latest survey report released by AmCham China, 50 percent of the US companies surveyed rank China as their top or among top three investment destinations. A survey by the European Chamber of Commerce in China found that 59 percent of companies see China as one of their top three investment destinations.

China is the only country with all the industrial categories on the United Nations’ industrial classification list. Behind the significant advantages Chinese enterprises enjoy in innovation ability, iteration speed and manufacturing efficiency are the country’s complete industrial chain and super large-scale market. As a major trading partner of more than 140 countries and regions, China is shifting from growth driven by investment and infrastructure construction to growth led by innovation. According to an IMF study, every 1 percentage point growth of China’s economy will drive the growth of other countries by 0.3 percentage points, and the country will remain the main contributor to global growth in 2024.

The IMF believes that China’s economy can recover faster than expected if it continues to take steps to reform its property sector and boost consumer confidence. China’s greater efforts to stabilize growth and nurture new growth drivers and open up wider to the outside world will offer tremendous opportunities for other countries.

PEOPLE’S DAILY