Business | Jan 18, 2025 | 6 min read China’s economy expands 5% in 2024

#Hong Kong

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.