From factory floors to financial markets, China's economic landscape in 2023 painted a picture of resilient growth powered by domestic consumption, even as it navigated significant sectoral shifts and global headwinds.
Key Takeaways
- China's nominal GDP reached 126.06 trillion yuan in 2023, marking a 5.2% year-on-year growth.
- Real GDP growth rate of China in 2023 was 5.2%, surpassing the annual target of around 5%.
- Per capita GDP in China hit 89,358 yuan in 2023, up 6.2% from 2022.
- China's total exports in 2023 were 23.77 trillion yuan, up 0.6% YoY.
- Total imports into China in 2023 reached 18.39 trillion yuan, down 5.5% YoY.
- Trade surplus for China in 2023 was 5.38 trillion yuan.
- China's value-added industrial output increased 4.6% in 2023.
- Manufacturing PMI averaged 49.7 in 2023.
- Steel production in China was 1.02 billion metric tons in 2023.
- China's urban unemployment rate averaged 5.2% in 2023.
- Surveyed urban unemployment rate was 5.16% in December 2023.
- Total employed population was 740.41 million in 2023.
- M2 money supply grew 10.4% in 2023.
- Social financing scale stock increased 9.5% at year-end 2023.
- Fiscal revenue was 23.37 trillion yuan in 2023, up 6.4%.
China's economy grew solidly in 2023, driven strongly by domestic consumption and investment.
Fiscal and Monetary Policy
- M2 money supply grew 10.4% in 2023.
- Social financing scale stock increased 9.5% at year-end 2023.
- Fiscal revenue was 23.37 trillion yuan in 2023, up 6.4%.
- Fiscal expenditure reached 28.55 trillion yuan in 2023, up 5.4%.
- National debt ratio was 57.2% of GDP at end-2023.
- PBOC cut reserve requirement ratio by 0.5 percentage points in 2024.
- Benchmark lending rate was 3.45% for 1-year LPR in Jan 2024.
- Foreign exchange reserves stood at 3.238 trillion USD in Dec 2023.
- Local government debt was estimated at 92 trillion yuan in 2023.
- Central bank balance sheet expanded by 8% in 2023.
- Renminbi internationalization: 4.61% of global payments in 2023.
- Housing provident fund deposits reached 8.5 trillion yuan end-2023.
- Tax revenue growth was 1.1% in 2023.
- Non-tax revenue surged 37.3% in 2023.
- Budget deficit was 3.8% of GDP in 2023.
- M1 money supply grew 3.9% in 2023.
- Loan prime rate 5-year averaged 4.20% in 2023.
- Total social financing increased by 35.29 trillion yuan in 2023.
- Broad money (M2) reached 298.47 trillion yuan end-2023.
- Real estate loans outstanding fell 1.3% in 2023.
- Household loans grew 2.5% in 2023.
- Corporate loans increased 3.1% in 2023.
- Government bond issuance was 11.6 trillion yuan in 2023.
- Stock market capitalization was 83.6 trillion yuan end-2023.
- Bond market size reached 141 trillion yuan end-2023.
- Shadow banking assets estimated at 60 trillion yuan in 2023.
- Digital yuan transactions hit 1.8 trillion yuan in 2023.
Fiscal and Monetary Policy Interpretation
China's economic engine is running on a potent cocktail of fiscal steroids and monetary espresso, but the patient is still nervously eyeing the massive local government debt in the room while trying to convince the world to use its currency.
GDP and Macroeconomic Indicators
- China's nominal GDP reached 126.06 trillion yuan in 2023, marking a 5.2% year-on-year growth.
- Real GDP growth rate of China in 2023 was 5.2%, surpassing the annual target of around 5%.
- Per capita GDP in China hit 89,358 yuan in 2023, up 6.2% from 2022.
- China's GDP accounted for 17.5% of the global total in PPP terms in 2022.
- Final consumption contributed 82.5% to GDP growth in 2023.
- Capital formation drove 27.0% of China's GDP growth in 2023.
- Net exports contributed -4.7% to GDP growth in 2023 for China.
- China's GDP growth in the first quarter of 2024 was 5.3% year-on-year.
- Industrial output contributed 37.3% to GDP growth in 2023.
- Services sector contributed 54.6% to GDP growth in 2023.
- Agriculture sector's contribution to GDP growth was 7.1% in 2023.
- China's CPI rose by 0.2% year-on-year in 2023.
- Core CPI (excluding food and energy) increased 0.8% in 2023.
- GDP deflator in China was -0.2% in 2023.
- China's current account surplus was 264.8 billion USD in 2023.
- China's GDP PPP was 30.3 trillion international dollars in 2023.
- GDP per capita PPP in China was 21,482 int. dollars in 2023.
- Projected GDP growth for China in 2024 is 4.6% per IMF.
- Inflation rate (CPI) projected at 1.0% for 2024 in China.
GDP and Macroeconomic Indicators Interpretation
While its 5.2% expansion hit the target with consumer spending firmly in the driver's seat, the negative GDP deflator reveals an economy cautiously navigating a deflationary undercurrent despite its formidable global heft.
Industrial Output and Sectors
- China's value-added industrial output increased 4.6% in 2023.
- Manufacturing PMI averaged 49.7 in 2023.
- Steel production in China was 1.02 billion metric tons in 2023.
- Automobile production reached 30.16 million units in 2023, up 11.6%.
- New energy vehicle output was 9.59 million units in 2023, up 37.8%.
- Electricity generation totaled 9.45 trillion kWh in 2023, up 6.8%.
- Crude oil production was 206.16 million tons in 2023.
- Coal output reached 4.66 billion tons in 2023, up 2.7%.
- Cement production was 2.22 billion tons in 2023.
- High-tech manufacturing grew 9.4% in 2023.
- Equipment manufacturing output increased 7.2% in 2023.
- Consumer goods industry grew 8.4% in 2023.
- Fixed asset investment rose 3.0% in 2023.
- Infrastructure investment grew 5.9% in 2023.
- Manufacturing investment increased 9.0% in 2023.
- Real estate investment fell 9.6% in 2023.
- Shipbuilding completions were 35.28 million DWT in 2023.
- Solar PV cell production reached 102.55 GW in Q1 2024 alone.
- Wind turbine manufacturing capacity utilization was high in 2023.
- Lithium battery output grew 36.5% in 2023.
- Integrated circuit output increased 9.8% in 2023.
- Pharmaceutical manufacturing grew 5.7% in 2023.
- Non-ferrous metals output rose 8.5% in 2023.
- Ferrous metals production increased 5.4% in 2023.
- General equipment manufacturing grew 6.9% in 2023.
- Special equipment manufacturing up 7.8% in 2023.
- Computer and electronics grew 8.9% in 2023.
- Railway rolling stock investment was 842.3 billion yuan in 2023.
Industrial Output and Sectors Interpretation
While China's industrial heart beats steadily at 4.6% with its property sector nursing a 9.6% hangover, it's busily churning out everything from electric cars to solar panels at a breakneck pace, powering a calculated economic pivot from pouring concrete to capturing the future.
Labor Market and Demographics
- China's urban unemployment rate averaged 5.2% in 2023.
- Surveyed urban unemployment rate was 5.16% in December 2023.
- Total employed population was 740.41 million in 2023.
- Urban employed population reached 479.97 million in 2023.
- Per capita disposable income was 39,218 yuan in 2023, up 6.3% nominally.
- Urban per capita disposable income was 51,821 yuan in 2023.
- Rural per capita disposable income was 21,691 yuan in 2023.
- Average nominal wage growth was 5.8% in 2023 for urban private units.
- Youth unemployment rate (16-24) peaked at 21.3% in June 2023.
- Labor force participation rate was 66.1% in 2022.
- Working-age population (15-64) was 70.1% of total in 2023.
- Online retail sales grew 11.0% in 2023 to 15.36 trillion yuan.
- Graduates from higher education institutions: 11.58 million in 2023.
- Urban surveyed unemployment rate for youth was 14.9% avg in 2023.
- Female labor force participation rate 60.5% in 2022.
- Minimum wage in Shanghai was 2,690 yuan/month in 2024.
- Pension insurance covered 1.07 billion people end-2023.
- Medical insurance participants: 1.34 billion end-2023.
- Consumer spending on services grew 13.1% in 2023.
- Household consumption expenditure was 60.2% of GDP in 2023 est.
- Engel's coefficient for urban households fell to 29.4% in 2023.
Labor Market and Demographics Interpretation
The data paints a picture of an economy both robust and restless, where impressive aggregate growth and social coverage coexist with the stark pressure of a generation of graduates scrambling for a seat at a table that seems perpetually resetting.
Trade and International Commerce
- China's total exports in 2023 were 23.77 trillion yuan, up 0.6% YoY.
- Total imports into China in 2023 reached 18.39 trillion yuan, down 5.5% YoY.
- Trade surplus for China in 2023 was 5.38 trillion yuan.
- Mechanical and electrical products accounted for 59.4% of China's exports in 2023.
- High-tech products exports grew 4.0% in 2023 to 5.47 trillion yuan.
- Exports to ASEAN countries rose 2.4% in 2023, totaling 3.68 trillion yuan.
- EU was China's largest trading partner in 2023 with trade volume of 739.0 billion USD.
- Trade with Belt and Road countries grew 2.8% to 19.47 trillion yuan in 2023.
- China's imports of crude oil in 2023 were 11.3% of total imports by value.
- Soybean imports into China totaled 99.4 million tons in 2023.
- LNG imports by China reached 79.0 million tons in 2023, up 12.3%.
- China's outbound direct investment was 147.91 billion USD in 2023.
- FDI actually used in China was 33.97 billion USD in 2023, down 19.7%.
- Total retail sales of consumer goods grew 7.2% in 2023 to 47.15 trillion yuan.
- Exports of goods and services were 20.8% of GDP in 2023.
- Imports of goods and services were 17.5% of GDP in 2023.
- FDI net inflows were 180.6 billion USD in 2022.
- Exports to US were 3.38 trillion yuan in 2023.
- Semiconductor imports totaled 385 billion USD in 2023.
- Total trade volume with RCEP countries was 14.37 trillion yuan in 2023.
- Petrochemical products exports grew 7.9% in 2023.
- Traditional labor-intensive products exports fell 6.5% in 2023.
- Container throughput at ports was 3.23 billion TEUs in 2023.
- Railway freight volume was 5.46 billion tons in 2023.
- Civil aviation passenger traffic was 5.96 billion person-km in 2023.
Trade and International Commerce Interpretation
China is no longer simply the world's factory floor but its highly engineered, resource-hungry, and diplomatically savvy workshop, selling circuit boards to Europe and ASEAN while voraciously importing soybeans and semiconductors to fuel its own next act.
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