China achieves 5% GDP growth in 2024
China reports strongest quarterly growth since 2023
China's economy grew 5.4% in the fourth quarter of 2024, surpassing analysts' expectations of a 5.0% increase and marking the fastest growth since the second quarter of 2023.
This strong performance helped China meet its 5% growth target for the year, with annual growth reaching 5.0%. Analysts had expected a slightly lower 4.9%, emphasizing the economy’s stronger-than-expected recovery in late 2024, reports Reuters.
Quarterly Growth and Stimulus Measures
On a quarterly basis, China’s GDP expanded by 1.6% from October to December, matching analysts' predictions and reflecting an acceleration from the 1.3% growth recorded in the previous quarter.
The improvement comes after the government rolled out a series of stimulus measures since September 2024 aimed at rejuvenating the economy. These efforts have included fiscal and monetary support to boost consumer demand, ease credit conditions, and help to struggle industries.
The fourth-quarter performance underscores the effectiveness of these stimulus policies in mitigating the economic slowdown experienced earlier in the year. As a result, China’s government has set its sights on further stimulating the economy in 2025 to ensure sustained growth, particularly in the face of ongoing global uncertainties.
Global Trade and Domestic Challenges
While the domestic economy has shown resilience, external factors remain a key concern. In particular, the prospect of U.S. President-elect Donald Trump's economic policies, including proposed tariffs on Chinese goods, looms large.
These trade tensions could pose risks to China's export-driven sectors, although the country has been working to diversify its markets and strengthen domestic consumption.
Looking ahead to 2025, analysts will be closely monitoring how China’s stimulus measures continue to unfold, as well as the broader impact of global trade relations, including U.S.-China dynamics. With the global economy facing uncertainties, China’s ability to sustain its recovery and manage domestic challenges will be crucial to its long-term growth trajectory.
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