According to market participants, China’s economic performance is exceeding expectations. Based on data released this week by the National Bureau of Statistics of China, the Chinese economy continued to recover in May with solid overall performance, while many positive factors emerged. Although some indicators fluctuated, most improved month-on-month, and the new dynamic trajectory of the economy is rapidly strengthening.
From the industry’s point of view, and in comparison with the main macroeconomic indicators, there are three pieces of data that confirm the above-mentioned evolution.
First, the rapid and continuous increase in green energy consumption, which in the first five months of 2024 reached 187.1 billion kilowatt-hours, an increase of 327% year-on-year. This five-month figure already exceeds the consumption for the entire last year, which was estimated at 105.9 billion kilowatt-hours. From the start of the first pilot program in 2021 until now, the market has gradually begun to understand and deepen its understanding of green energy trading. Today, China is the world’s largest trading market for green electricity.
Second, the data on charging infrastructure. As of the end of May this year, the country’s total charging infrastructure reached 9.92 million units, an increase of 56% year-on-year. Globally, China has built the largest charging network, offering the most comprehensive infrastructure and the widest range of related services. China’s new energy vehicles, which have ranked first in the world in terms of production and sales volume for nine consecutive years, directly affect the country’s high level of charging infrastructure construction.
Finally, the number of freight trains operating on the China-Europe line set a new monthly record. According to statistics from the Chinese customs authorities, 2,733 trains were released on the Asian section in May. Among them, 1,724 trains transported 186,000 TEU of goods, with the number of trains increasing by 14% year-on-year and the freight by 13% respectively. The rapid growth of China-Europe freight trains reflects the good trend of China’s foreign trade, which has seen steady qualitative and quantitative improvement. In May, China’s merchandise trade value in yuan increased by 8.6%, with exports in particular increasing by 11.2% and the growth of high-quality foreign trade making further progress.
The above three figures for China’s industry correspond to consumption, investment and export – three key sectors that constitute, to a certain extent, the country’s macroeconomic triad. Overall, the forces of domestic demand are released and continuously strengthened through the implementation of effective investment, while the country’s development path, through the positive interaction of the internal and external economic cycle, becomes increasingly clear.
Based on the assessment of China’s important economic data, many authoritative international organizations and institutions have recently raised their annual growth forecasts for China’s economy. The World Bank raised its forecast for China’s economic growth this year to 4.8 percent, up 0.3 percentage points from its previous forecast. The International Monetary Fund raised its forecast for China’s economic growth this year to 5 percent, up 0.4 percentage points from its previous forecast. These increases fully demonstrate the international market’s confidence in China’s economic growth prospects.