China Real GDP Growth | Economic Indicators (2024)

FAQs

What is the GDP of China in real terms? ›

China's real GDP growth was three percent in 2022 and 5.2 percent in 2023. In 2023, per capita GDP in China reached around 12,514 U.S. dollars.

GDP Annual Growth Rate in China averaged 8.86 percent from 1989 until 2024, reaching an all time high of 18.70 percent in the first quarter of 2021 and a record low of -6.90 percent in the first quarter of 2020.

The drivers of China's economic growth. The latest numbers released by China's National Bureau of Statistics on Tuesday (April 15) showed growth was propelled by an expansion in the country's services sector, as well as upbeat external demand boosting export growth, especially in the industrial sector.

Real GDP is a better indicator of economic growth because it can be compared with base year GDP. While nominal GDP cannot be compared to any previous year's GDP.

China's economic development has been fueled in large part by a sprawling industrial sector, which includes manufacturing, construction, mining, and utilities. In 2021, value-added industrial output accounted for 39 percent of China's GDP—more than double that of the United States (18 percent).

Key Takeaways. China's economy has grown to one of the largest and most powerful in the world over the past few decades. Driven by industrial production and manufacturing exports, China's GDP is actually now the largest in terms of purchasing power parity (PPP) equivalence.

Since China began to open up and reform its economy in 1978, GDP growth has averaged over 9 percent a year, and more than 800 million people have lifted themselves out of poverty. There have also been significant improvements in access to health, education, and other services over the same period.

Chinese real GDP growth came in at 1.6% (non-annualized) in the first quarter of 2024 after rising 1.2% in the previous quarter. Year-on-year, the first-quarter gain was 5.3%. Chinese inflation fell again, from 0.7% in February to 0.1% in March. Industrial production climbed 4.5% from March 2023.

An increase in real GDP is not necessarily economic growth

Similarly, an economy that is recovering from a recession might experience an increase in real GDP, but that is not economic growth.

But the world's second-largest economy has struggled to mount a strong and sustainable post-COVID pandemic bounce, burdened by the protracted property crisis, weak consumer and business confidence, mounting local government debts, and weak global growth.

What are China's top 3 exports? ›

The reforms included the establishment of special economic zones, the promotion of foreign investment, and the liberalization of trade policies. These reforms opened up the Chinese economy to the world, creating new opportunities for trade and investment.

GDP is an indicator of a society's standard of living, but it is only a rough indicator because it does not directly account for leisure, environmental quality, levels of health and education, activities conducted outside the market, changes in inequality of income, increases in variety, increases in technology, or the ...

GDP measures the value of the final goods and services produced in the United States (without double counting the intermediate goods and services used up to produce them). Changes in GDP are the most popular indicator of the nation's overall economic health.

While GDP is widely regarded as the most accurate indicator of a country's output, it doesn't include transactions that occur off the market or account for income inequality within that country. It also doesn't consider profits earned in one country and remitted to another.

China had the second largest economy, at around 18.1 trillion U.S. dollars. The remaining countries that rounded out the world's 20 largest economies all had GDPs that ranged between 800 billion and five trillion U.S. dollars.

The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.