A promising economic outlook in 2024

A Promising Economic Outlook in 2024

China's economy is showing signs of a steady rebound amid a series of stimulus measures, with profits of the country's industrial enterprises extending gains for a fifth consecutive month in December as overall manufacturing improved.

Experts said the latest figures send positive signals for a promising economic outlook in 2024, with economic growth of around 5 percent anticipated for this year, given robust policy support, the advancement of industrial transformation and upgrading and the deepening of reform and opening-up.

Manufacturing and infrastructure investment will play a bigger role in fostering stable economic growth in 2024, and more stimulus measures are needed to boost domestic demand and promote the upgrading and digital transformation of the manufacturing sector, they said.

Data from the National Bureau of Statistics showed on Saturday that industrial enterprises with annual revenue of at least 20 million yuan ($2.8 million) saw their total profits increase on average 16.8 percent year-on-year in December, after a 29.5 percent rise in November.

In 2023, profits of industrial enterprises fell 2.3 percent year-on-year to 7.69 trillion yuan, narrowing from the 4.4 percent drop in the first 11 months, the bureau said.

The data points to a continued recovery trend in industrial profits, said NBS statistician Yu Weining, adding that more efforts should be made to consolidate the recovery trend and promotion of the high-quality development of industry.

It is reported that the Chinese economy still faces an acute challenge of insufficient demand, making it necessary for the government to take on debt of at least 11 trillion yuan this year and promote annual growth in social financing of at least 11 percent to bring inflation and economic growth to a more reasonable range.