June 17 (Xinhua) — Services, consumption, and imports and exports rebounded, industrial production maintained relatively rapid growth, and employment and prices remained stable... The May report card on China's economy, released by **, continues the trajectory of recovery and improvement.

　　Officials noted that the release of macroeconomic policy effects and the May Day holiday were the main factors driving the rebound in major indicators for the month. This was particularly evident in the consumption sector.

　　Influenced by the May Day holiday, the effectiveness of the trade-in policy for consumer goods, and the early launch of the "6·18" shopping festival, China's total retail sales of consumer goods in May grew 3.7% year on year, 1.4 percentage points faster than the previous month; among the 18 categories of goods for units above the designated size, retail sales growth accelerated in 13 categories.

　　More information can be read from the consumption structure. On the one hand, services consumption continued to outpace goods consumption. In May, catering revenue grew 5.0% year on year, while retail sales of goods grew 3.6%, both rebounding from the previous month. On the other hand, consumption growth of some durable goods rebounded. In May, retail sales of household appliances and audio-visual equipment for units above the designated size grew 12.9% year on year, 8.4 percentage points faster than in April; transactions of new energy passenger vehicles grew 38.4% year on year.

　　Wen Bin, chief economist of China Minsheng Bank, believes that the record-high number of trips during the May Day holiday reflects that Chinese residents' willingness to consume remains. From the perspective of consumption capacity, the stable job market since May has provided a foundation for the recovery of consumption. In the first quarter, residents' income growth continued to outpace economic growth, which is also conducive to stabilizing consumption capacity.

　　In addition, as all parties accelerate the layout of new quality productive forces, China's new economic drivers are also constantly growing.

　　The manufacturing sector's transformation toward high-end, intelligent, and green development is one of the prominent manifestations. In May, the value added of China's high-tech manufacturing above the designated size grew 10.0% year on year, 4.4 percentage points faster than all industrial output above the designated size, among which the manufacturing of electronic and communication equipment has maintained double-digit growth since the beginning of this year. In terms of intelligent manufacturing, in May, the value added of the intelligent unmanned aerial vehicle manufacturing industry grew 75.0% year on year, and that of the intelligent vehicle-mounted equipment manufacturing industry grew 19.7%.

　　This momentum of recovery and improvement has led many international institutions and organizations to cast a "vote of confidence" for China's economic prospects. For example, the World Bank recently raised its forecast for China's economic growth in 2024 to 4.8%, 0.3 percentage points higher than its previous forecast. The International Monetary Fund also raised its forecast for China's economic growth this year to 5%, one reason being that the authorities have adopted effective policy measures.

　　As the year reaches its midpoint, the direction and implementation of the next round of policies will determine whether China's economy can fulfill the above growth expectations and achieve its full-year development goals. Analysts believe that as the external environment becomes increasingly complex and severe, boosting effective domestic demand and stimulating the vitality of market entities remain the focus of policy.

　　China's recently introduced measures are precisely focused on this. In terms of fiscal policy, the issuance of ultra-long special treasury bonds has been launched, and the issuance of special bonds has clearly accelerated. In terms of monetary policy, support for the development of the real estate market has been provided by lowering the down payment ratio, removing the floor on mortgage interest rates, reducing the provident fund loan interest rate, and introducing a 300 billion yuan relending facility for affordable housing. In addition, policies for large-scale equipment renewal and trade-in of consumer goods are being rolled out intensively across localities and sectors.

　　Liu Aihua, spokesperson for the National Bureau of Statistics, noted that some policies have been introduced and implemented for a relatively short time, and as the policies are further implemented and refined, their effectiveness will be further released, continuing to support the development of the real economy.

　　Wen Bin believes that in the next stage the external environment will become more complex, severe, and uncertain, but China's external demand will continue to remain resilient, exports will still maintain relatively rapid growth in the short term, and this will boost related industrial chains. Policies will continue to exert effects in expanding demand, especially fiscal policy, which has ample room to act and is expected to play a supporting role.