China's GDP rose 1.0 percent on the quarter in the three months to December, moderating from growth of 1.3 percent in the three months to September, with year-over-year growth picking up from 4.9 percent to 5.2 percent. Ahead of the release of today's data, Premier Li Qiang announced at the World Economic Forum that annual GDP growth for China in 2023 was also 5.2 percent.

In the statement accompanying today's data, officials characterised the annual data as evidence of steady improvement in the economy's"momentum of recovery". Officials will announce growth and inflation forecasts for 2024 at the annual meeting of the National People's Congress in March, but ahead of today's data Premier Li noted that the growth recorded in 2023 was not driven by"massive stimulus" and that officials"did not seek short-term growth while accumulating long-term risks". These comments suggest officials remain comfortable with current policy settings for now, despite ongoing weakness in the property market.

Today's GDP and monthly activity data were broadly in line with consensus forecasts, except for retail sales, which were somewhat weaker than expected. The China RPI rose from minus 14 to zero and the RPI-P rose from minus 10 to plus 10, indicating that recent Chinese data in sum are coming in close to consensus forecasts.

Fourth-quarter GDP is expected to rise 1.0 percent versus the third quarter which would compare with 1.3 percent sequential growth from the second quarter. But year-over-year expectations are for stronger growth, at 5.2 percent which would compare with 4.9 percent in the third quarter.

Gross Domestic Product (GDP) refers to the final products at market prices produced by all resident units in a country (or a region) during a certain period of time. GDP is the core indicator of the national accounts, and also an important indicator to measure the economic conditions and the level of development of a country or region. GDP is calculated from three approaches -- production, income and expenditure -- which reflect gross domestic product and its composition from different angles.

GDP is the all-inclusive measure of economic activity. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

The data are compiled by NBS and the People's Bank of China (PBoC). Estimates for non-financial corporations, financial corporations, general government, household and the rest of the world sectors are published. The production accounts, distribution and use of income account, and capital account data are compiled by NBS. NBS also develops the financial account by rearranging financial transactions data in the flow of funds accounts compiled by PBoC. There are no breakdowns of government consumption expenditure, gross fixed capital formation, change in inventories and net exports. Household consumption expenditures are broken down into urban and rural. The income components of GDP are only published in the input-output tables. NBS uses the Chinese Industrial Classification of the National Economy.