• China's December industrial output rose 6.8% YoY

• Retail sales in December slowed to 7.4% YoY

• Fixed asset investment saw a 3.0% YTD YoY growth

• China jobless rate increased marginally to 5.1%, youth unemployment elevated at 14.9%

More policy supports are expected China's economy last year suffered one of its worst annual performances in more than three decades. 4Q23 GDP expanded 5.2% YoY, accelerating from 4.9% growth in 3Q23. On a quarterly basis, the economy rose 1.0% in 4Q23, slowing from the expansion of 1.5% in Jul-Sep. For the year as a whole, the economy grew 5.2%, up from 3.0% growth in 2022 and successfully beating the government's pre-set yearly target of around 5.0%. This performance however was still down sharply from the 6.0% expansion in 2019, before the pandemic, even with a low base of comparison flattering the figure. By industry, primary industry registered a growth rate 4.2%, similar to 3Q23 growth. However, growth in secondary (manufacturing and construction) sectors surged to 5.5% (3Q23: 4.6%) whilst growth in tertiary sector increased slightly to 5.3% (3Q23: 5.2%).

Source: BIMB Securities Research - 18 Jan 2024