The KPMG China report showed that in the first quarter of 2022, China's economy grew by 4.8% year-on-year, which was higher than market expectations. However, due to the spread of Omicron since March, the prevention and control measures have a greater impact on the economy in the second quarter. In addition, there are many uncertainties in the current global economy. Geopolitical conflicts have led to fluctuations in commodity prices, international supply chain challenges, and tightening of monetary policies in developed economies will cause greater pressure on China's economic performance in the future. It is expected that macro policies will further strengthen the support of fiscal and monetary policies to stabilize economic growth.
China’s economy has improved in 2020, and was the only major economy in the world to achieve positive economic growth. China showed a positive growth rate of 2.3 percentage points throughout the year 2020. China’s total GDP exceeded one trillion yuan, accounting for 17% of the world's total in 2020; while the GDP per capita reached 72,447 yuan and rose to 59th in the world.
Growth Structure
First, from the perspective of growth structure, China’s economic growth continued to improve in 2021. In the first half of the year, the GDP was 53,216.7 billion yuan, a year-on-year increase of 12.7% based on comparable prices; the average growth rate for the two years was 5.3%, 0.3 percentage points higher than that in the first quarter.
Industrial Added Value
Secondly, from the perspective of industrial added value, the profits of industrial enterprises have grown strongly. In the first half of this year, the added value of industries above designated size increased by 15.9% year-on-year, with an average growth rate of 7.0% in the two years, 0.2 percentage points higher than that in the first quarter; the contribution rate of the added value of the service industry to economic growth reached 53%, an increase of 2.1 percentage points over the first quarter.
Domestic Market
Thirdly, from the perspective of the domestic market, domestic demand has recovered strongly. In the first half of this year, the national fixed asset investment (excluding farmers) was 25.59 trillion yuan, a year-on-year increase of 12.6% and an average increase of 4.4% in the two years.
International Market
Fourthly, from the perspective of the international market, the import and export of goods and services continued to improve. In the first half of this year, the total import and export of goods was 18,065.1 billion yuan, a year-on-year increase of 27.1%. At the same time, from the perspective of service trade, in the first quarter of this year, the service trade import and export increased by 0.5% year-on-year; among which, service exports increased by 22.8%.