China's economy expands 5pc in 2024, hitting target

FE Team | Published: January 17, 2025 22:14:56

HONG KONG, Jan 17 (AP) : China's economy expanded at a 5% annual pace in 2024, slower than the year before but in line with Beijing's target of "around 5%" growth, helped by strong exports and recent stimulus measures.
In quarterly terms, the economy grew 5.4% in October-December, the government reported Friday.
Exports accelerated as companies and consumers rushed to beat potential tariff hikes incoming President-elect Donald Trump may impose on Chinese goods.
"The national economy was generally stable with steady progress and new achievements were made in high-quality development," according to the report by the National Bureau of Statistics on Friday.
"Particularly, with a package of incremental policies being timely rolled out, the social confidence was effectively bolstered and the economy recovered remarkably," it said.
Manufacturing was a strong engine for growth last year, with industrial output jumping 5.8% from a year earlier. Total retail sales of consumer goods grew 3.5% at an annual rate.
Exports expanded 7.1% in annual terms, while imports grew 2.3%
The world's second largest economy has struggled with weaker consumer spending and resulting deflationary pressures as its recovery after the COVID 19 pandemic faltered and the property sector, once a main driver of business activity, fell into a downturn.
The Chinese economy grew at a 5.2% annual rate in 2023, and economists have forecast that it will slow further in coming years.
Some economists say the economy is growing at a slower pace than shown in official estimates.
"The precise achievement of the official growth target is highly dubious at a time when most indicators of economic activity and financial markets are flashing red," Eswar Prasad, an economics professor at Cornell University, said in an emailed comment.
"The economy continues to be beset by a combination of weak domestic demand and persistent deflationary pressures, in addition to a hostile external environment that could limit exports," he said.
Trump, who will be inaugurated next week, has pledged to increase U.S. import duties on Chinese goods. This week, the Biden administration also imposed further restrictions on exports of advanced semiconductors and technology as it sought to maintain the U.S. lead on advanced technologies and block China's access.