China’s GDP Soars to New Heights with a 3% Increase in 2022
As per statistics provided by the National Bureau of Statistics (NBS), the Chinese economy displayed consistent progress in 2022, as the Gross Domestic Product (GDP) exceeded 100 trillion yuan consecutively for the third year. Furthermore, the nation attained steady levels of consumer prices and employment rates while ensuring an adequate supply of both grain and energy.
The NBS has published the Statistical Communiqué of China, focusing on the National Economic and Social Development in 2022, prior to the annual two sessions scheduled in March. The communiqué illustrates the performance and accomplishments of the country during the previous year despite facing challenges domestically and globally.
Experts have suggested that the communiqué’s release prior to the two sessions is intended to provide NPC deputies and CPPCC representatives with official data and insights to inform their targeted proposals.
In 2022, China’s GDP reached 121.02 trillion yuan, representing a 3% increase from the previous year. This followed it is surpassing 100 trillion yuan in 2020 and 110 trillion yuan in 2021, indicating a new stage of growth. According to Sheng Laiyun, a deputy director of the NBS, this equates to an economic aggregate of $18 trillion and a GDP per capita of $12,741 at the average annual exchange rate, ranking the country second in the world.
Cong Yi, a professor at the Tianjin University of Finance and Economics, stated that releasing the communiqué before the two sessions would aid in managing expectations and providing deputies and representatives with more precise data and analysis. He emphasized the need to strengthen confidence and stabilize expectations as a key focus.
On March 5th and March 4th, the 14th National People’s Congress and the 14th National Committee of the Chinese People’s Political Consultative Conference will respectively commence their inaugural sessions in Beijing. This year’s two meetings will focus on proposals and suggestions that will help to boost domestic demand. Some of the priorities include optimizing investment structure and promoting private sector growth.
The nation’s grain and energy security will also be discussed, especially since the country achieved a new record of 1.37 trillion jin (685 billion kilograms) in grain output and 204.72 million tons of crude oil production, surpassing the 200 million-ton mark for the first time since 2016.
The year 2022 saw a significant milestone as the total added value for all industries surpassed 40 trillion yuan. Specifically, the added value of the manufacturing sector hit 33.5 trillion yuan, highlighting China’s continued leadership in the global manufacturing industry.
According to the latest data, 734 million jobs were created in 2022, with 459 million of them being urban jobs, representing 62.6 percent of the total employed workforce in the country. Meanwhile, the consumer price index only increased by 2 percent, which is significantly lower than the rates of 8 percent in the US, 8.4 percent in the EU, and 9.1 percent in the UK. This highlights the stark contrast between “China’s price stability” and “global inflation,” as emphasized by Sheng.
Despite facing challenges such as a decrease in domestic demand, supply chain disruptions, and lower expectations, China’s economy is resilient and has significant potential for high-quality growth, according to Sheng. On February 23rd, Premier Li Keqiang announced that the relevant reports and plans are being drafted by the responsible authorities to tackle the current situation. Furthermore, the economy has been rebounding steadily, with an accelerated recovery in consumption and enhanced market expectations during the first two months of 2023.