China\u2019s economy grew by 5% in 2024, driven by a surge in the manufacturing sector. Companies accelerated exports in anticipation of US tariff increases, and Beijing implemented stimulus measures to bolster growth, according to official data.<\/p>\n
The economy \u201crecovered remarkably\u201d in the fourth quarter of 2024, expanding by 5.4% year-on-year, a rebound from slower growth in the third quarter, the National Bureau of Statistics (NBS) reported.<\/p>\n
\u201cConfidence was effectively supported by an increasing package of [stimulus] policies, and the economy recovered remarkably,\u201d the NBS stated in its 2024 GDP data release on Friday.<\/p>\n
The annual growth figure slightly exceeded economists\u2019 forecasts of 4.9% but fell short of the 5.2% growth recorded in 2023. This marks the lowest growth rate since 1990, excluding years impacted by the COVID-19 pandemic.<\/p>\n
The data comes as Beijing aims to revive robust growth in a two-speed economy, where strong exports and manufacturing offset weak household sentiment.<\/p>\n
In September, the central bank announced monetary easing measures and support for the stock market. Beijing also launched a program to refinance local government debt and accelerate stimulus spending targeting infrastructure and other sectors.<\/p>\n
However, economists warn that China faces the risk of entrenched deflation. Producer prices have remained in negative territory for over two years, and consumer prices grew by just 0.1% in December.<\/p>\n
NBS Director Kang Yi noted at a press conference that 2024 \u201ccan be described as a rather turbulent period in which geopolitical conflicts intensified and trade protectionism increased.\u201d<\/p>\n
Analysts expect Beijing to set its official growth target for 2025 at around 5% for the third consecutive year when the National People\u2019s Assembly convenes in March. Trade is anticipated to face challenges due to the threat of higher tariffs under the new US administration led by President Donald Trump.<\/p>\n
\u201cThe negative effects of the external environment are deepening. Domestically, demand remains lackluster,\u201d Kang said, adding that \u201cemployment and income growth\u201d are under pressure.<\/p>\n
Retail sales grew by 3.5% in 2024, reflecting weak consumer confidence amid the ongoing housing crisis. Meanwhile, industrial production rose by 5.8%, driven by strong growth in the manufacturing sector.<\/p>\n
Population decline continues for the third year<\/strong><\/p>\n While house prices fell in China\u2019s largest cities, new home prices rose in Shanghai.<\/p>\n In a further sign of long-term structural challenges, China\u2019s population declined by nearly 1.4 million in 2024, marking the third consecutive year of decline. Births increased to 9.54 million but lagged behind 10.93 million deaths.<\/p>\n Frederic Neumann, HSBC\u2019s chief Asia economist, noted that while China\u2019s economic growth exceeded expectations, the headline figure \u201cmasked some underlying vulnerabilities.\u201d<\/p>\n \u201cThe pick-up in growth was indeed driven by industrial production, which points to support from front-loading of exports in anticipation of US import restrictions,\u201d Neumann told the\u00a0Financial Times<\/em>. \u201cThis will inevitably lead to a payback when the US import restrictions start to take effect.\u201d<\/p>\n According to customs data released last week, China\u2019s trade surplus with the rest of the world reached a record high of nearly $1 trillion in 2024, fueled by strong export growth as Chinese manufacturers ramped up production to offset sluggish domestic demand. Import growth remained modest.<\/p>\n \u201cThe current Achilles\u2019 heel in the Chinese economy is indeed the hesitant consumer,\u201d Neumann added. \u201cAll this points to the need for more stimulus, especially the need to support consumer spending power.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" China\u2019s economy grew by 5% in 2024, driven by a surge in the manufacturing sector. Companies accelerated exports in anticipation of US tariff increases, and Beijing implemented stimulus measures to bolster growth, according to official data. The economy \u201crecovered remarkably\u201d in the fourth quarter of 2024, expanding by 5.4% year-on-year, a rebound from slower growth […]<\/p>\n","protected":false},"author":1,"featured_media":7301,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[4],"tags":[5059,5056,5063,5060,2078,503,5064,5057,5061,5062,5058],"class_list":["post-7300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia","tag-beijing-stimulus-measures","tag-china-gdp-growth-2024","tag-consumer-confidence","tag-deflation-risk","tag-economic-recovery","tag-headline","tag-industrial-production-growth","tag-manufacturing-sector-surge","tag-population-decline","tag-trade-surplus","tag-us-tariff-increases"],"yoast_head":"\n