China missed GDP forecasts for the fourth quarter on Wednesday, but it started disclosing the youth unemployment rate again.

China’s National Bureau of Statistics reports that the country’s GDP increased by 5.2% during the last three months of 2023. That is less than the 5.3% predicted in a Reuters survey.

5.2% GDP growth was recorded for the entire year.

“With investment in the property sector falling, the economy is more dependent on the manufacturing sector and service sector,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.

“This transition will take time to be accomplished. The key question in the market is when the transition in the property sector will finish.”

With those still enrolled in school excluded, the December unemployment rate for young adults (16 to 24) was 5.1% in cities and 14.9% for those in the younger age group.

Due to the necessity to review computation techniques, the bureau had temporarily halted the publication of the unemployment rate for the younger age group in the summer. In the past, that unemployment rate had increased to record highs of more than 20%.

December’s retail sales increased 7.4% over the previous year, less than the projected 8% gain.

December’s industrial production increased 6.8% over the previous year, exceeding estimates of a 6.6% increase.

The rise in fixed asset investment for 2023 was 3%, little higher than the estimated 2.9% increase.

Real estate investments in fixed asset classes fell by 9.6% in 2023. While manufacturing investment expanded by 6.5%, infrastructure investment increased by 5.9%.

Physical products sales through online retailers increased by 8.4%, making up about 28% of total retail sales.

Also, according to the statistics office, retail sales of services increased by 20% in 2023 over the previous year.

December’s retail sales showed a 29% increase in jewellery purchases and a 26% increase in clothing and shoe purchases.

December saw a decline in sales of everyday essentials, prescription drugs, workplace, cultural, and construction-related products.

In December 2022, China abruptly lifted its Covid-19 restrictions, causing a rush of individuals to acquire medication in response to the country’s rampant illness.

China’s population decreased by almost 2 million to 1.41 billion in 2023, according to the statistics agency. In 2022, there were 850,000 fewer people living than in 2021.

“We must effectively enhance economic vitality, prevent and mitigate risks, improve social expectations, consolidate and boost the sound momentum of economic recovery and growth, in a bid to effectively upgrade the quality and appropriately expand the quantity of the national economy,” the bureau said.

(Adapted from CNBC.com)

Categories: Economy & Finance, Entrepreneurship, Geopolitics, Regulations & Legal, Strategy