Chongqing - Experts believe that the overall performance of Chongqing's economy in the first quarter of this year was "stable" despite issues such as high unemployment.

The overall growth rate of Chongqing's economy in the first quarter was 4.7%, 2.1% higher than the annual rate of last year and 0.2% higher than the national average. 

According to Li Jing, Vice President of Chongqing Technology and Business University, the economy is relatively "stable," and both the supply and demand show signs of stabilization and recovery. Yao Shujie, a Chongqing University professor, believes this is a perfect start and lays a good foundation for achieving the growth target of over 6% this year.

Chongqing reported a 4.7% GDP growth in the first quarter of 2023. (Photo/ Seres)

Yao stated that Chongqing's "stable" economy is mainly reflected in the comprehensive growth of the major industries. The manufacturing industry grew by 5.6% year-on-year, significantly higher than the national average. The fixed asset investment growth rate was higher than the national average, indicating confidence in Chongqing's future development.

Li believes that the increased efficiency of Chongqing's economy is mainly reflected in three aspects: the growth of fixed asset investment, gradual recovery of consumption, and rapid development of new industries. The new energy vehicle products increased by 25.4%, injecting strong momentum into sustained economic growth.

Yao mentioned that the expected number of graduates from Chongqing universities this year will reach 345,000, a new high. "Chongqing's unemployment rate is slightly higher than the national average. This indicates that Chongqing still faces great pressure to stabilize employment," Yao said.

Li said that the industrial chain affected by the epidemic has not fully recovered. Chongqing's Producer Price Index (PPI) in the first quarter decreased by 1.6%, and the purchase price decreased by 1.3% year-on-year, indicating insufficient endogenous demand, perhaps due to the lack of a recovery in consumer confidence and structural product surplus. 

The real estate industry is still depressed. From the supply side, real estate development investment decreased by 13.6%; from the demand side, the commercial housing sales area in the city was 10.81 million square meters, a decrease of 17.1%. Real estate shows a dual contraction of supply and demand, which means the market confidence is insufficient.

Yao mentioned that technological innovation is crucial to the transformation and upgrading of the entire industry in Chongqing, which will be the focus of Chongqing's development in the future. Li suggested that Chongqing should increase its fiscal expenditure and make corresponding efforts to expand domestic demand.