Chinese consumers enjoy their time in a shopping mall of Zhengzhou. (PHOTO: VCG)

Edited by QI Liming

The International Monetary Fund forecast in July that China's economy will grow 5.2 percent this year, unchanged from its April forecast. Against the backdrop of a sluggish world economic recovery, the Chinese economy has shown a high degree of resilience.

International economic circles and academics said that China remains an important engine for world economic growth. When facing difficulties, China is able to withstand pressure, and the Chinese economy has maintained a steady recovery.

The certainty of uncertainties

China's economic recovery and the positive effect on the global economy have been focused by sophisticated commentators around the world.

Sebastián Schulz, research fellow of National University of La Plata in Argentina, said that despite the current world economic situation, the Chinese economy has maintained steady growth, showing its resilience.

Katsuyuki Hasegawa, professor of international economics and finance at Tokyo Woman's Christian University, said that against the backdrop of rising interest rates in Europe and the U.S. and high uncertainties in the world economic and financial environment, the steady development of the Chinese economy is crucial to the recovery of the world economy.

According to Børge Brende, the President of the World Economic Forum (WEF), he is confident about China's economic growth prospects, because, "China has taken many right measures to support economic growth."

A WEF survey shows that businesspeople are full of expectations for the opportunities in the Chinese market in the post-COVID-19 era.

Meanwhile, Australian economist Guo Shengxiang pointed out that even with all the external constraints, China's economy is still on track to achieve its projected growth target of around five percent this year, showing that it has a strong ability to withstand the test of these external risks.

Consumer market optimism

U.S.-listed Yum China has 445 million loyalty program members, which operates American fast-food chains such as Taco Bell, Pizza Hut, and KFC in China. 

According to business magazine Forbes, the Q2 revenue of  Yum China is over 25 percent higher than that in 2022; compared to Q2 2019, the results are also impressive and the conglomerate's number of stores has grown to 13,602 from 2019's 11,023.

Brendan Ahern, CIO of KraneShares, a China-focused ETF provider, said that Yum China's results are outstanding, and the earnings highlight consumer rebound.

Mckinsey & Company's medium-term outlook on China's consumption remains positive. The latest simulation from the McKinsey Global Institute suggests an additional 50-plus million households in China may reach upper-middle-class status by 2025, forming the majority of urban households. This demographic has been fueling consumption growth and is leading an increasingly consumption-driven economy.

Consumption data trending well

According to Mckinsey & Company, China's encouraging macroeconomic and consumption indicators in the first half of 2023 have also presented eye-catching numbers.

Most economic and consumption data for the first half of the year are positive. Retail sales of goods increased by approximately seven percent compared to the same period last year. Food service sales, comprising restaurants and nightlife, even saw double-digit growth.

Clothing, cosmetics, and even autos experienced growth, at or near double-digit rates compared to last year, showing gains on 2021. General e-commerce platforms generated a five percent increase in gross merchandise value, while livestreaming platforms saw double-digit growth.

Looking at ourism, China is approaching its record-setting peak in 2019, according to data from China Tourism Academy.

According to China's Ministry of Culture and Tourism, in the first half of 2023, the total number of domestic tourists was 2.38 billion, an increase of 929 million over the same period last year. Domestic tourism revenue reached 2.3 trillion RMB, an increase of 95.9 percent year-on-year.

Meanwhile, Chinese inbound and outbound tourism has also rebounded sharply. Undeniably, the desire to travel both domestically and internationally is evident among Chinese consumers.