Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Railway builders erect a box girder at the standard project site in front of the Huning section of the Shanghai-Nanjing-Hefei high-speed railway in Suzhou, Jiangsu province, China, 10 January 2025 .
Costfoto | Nurfoto | Getty Images
China’s economy grew by 5% year on year in 2024, with growth in the last quarter of the year, as a flurry of stimulus measures began and helped respond to Beijing’s growth target.
Fourth quarter GDP exceeded expectations with 5.4% growth, according to China’s National Bureau of Statistics. Economists polled by Reuters had estimated growth of 5.0% in the last quarter.
It was a faster growth compared to 4.6% in the third quarter, 4.7% in the second quarter, 5.3% in the first quarter.
Full-year economic growth was lower compared with a growth of 5.4% in 2023 post pandemic. As part of a annual review of preliminary figuresthe statistics agency at the end of December revised the GDP growth of 2023 to 7.4%, according to a CNBC calculation of official data.
The statistics agency, however, warned: “We must be aware that the adverse effects brought about by the external environment are increasing, domestic demands are insufficient.” It is called to implement “more proactive and effective macro policies”.
In December, retail sales jumped 3.7% from a year earlier, beating Reuters’ forecast of 3.5%. Industrial production expanded 6.2% from a year earlier, versus expectations of 5.4%, underscoring China’s imbalance between domestic production and weak demand.
Full-year fixed asset investment rose 3.2% in 2024, shy of the 3.3% increase expected in a Reuters poll, as real estate investment dragged down has grown to a fall of 10.6%, compared to the period from January to November.
The urban unemployment rate was higher at 5.1% in December from 5.0% in the previous month.
The disposable income of urban residents grew by 4.4%, while that of rural residents grew by 6.3% in 2024.
The national population fell from 1.39 million in 2023, to 1.408 billion people.
China has striven to stimulate economic growth and has took several measures towards this end
Since the end of September, the Chinese authorities have asked to stop the real estate decline, cut interest rates and announced a five-year fiscal package worth 10 trillion yuan ($1.4 trillion) to ease the funding crisis of local governments. Beijing also expanded a program for consumers to trade in used cars and home appliances, and buy new ones at a discount.
Top leaders promised “proactive” fiscal measures and a “moderately loose” monetary policy stance for the current year.
Some analysts expect stimulus It could start taking effect this year, but it will take more time to see a significant impact.
The real estate slump and uncertainty about future income weighed on consumer spending and business confidence, adding to the problems of deflation.
China’s consumer inflation remained just above zero, while wholesale prices fell for the 27th consecutive month in December, official data showed last week.
The government is expected to reveal official growth targets for 2025 and additional stimulus measures at annual parliamentary meetings in March.
Economists have predicted that China will maintain its GDP growth target for 2025 at around 5%if not slightly lower.
Friday’s data comes just days before Donald Trump is inaugurated as the next president of the United States on January 20. Trump said that shortly after taking office, he plans to impose additional fees of at least 10% on Chinese products. He also has named some hawks of China to the key positions of the cabinet.
This is breaking news. Please check back later for updates.
