China’s Economic Growth in Q4 2024

Investing.com reports that China’s economy grew more than expected in the fourth quarter of 2024, according to GDP data released on Friday. The growth comes as Beijing implemented a slew of stimulus measures to support the economy.

GDP Growth

• Year-on-year growth: 5.4% in Q4, surpassing expectations of 5% and a significant increase from the previous quarter’s growth of 4.6%.
• Quarter-on-quarter growth: 1.6%, matching forecasts.

This growth brings the annual GDP to 5%, aligning with Beijing’s targeted growth rate, maintaining the same figure for the second consecutive year. The government has set the same growth target for 2025.

Impact of Stimulus Measures

The data indicates that the stimulus measures implemented since late September are beginning to yield positive results. These aggressive measures are primarily focused on:
– Supporting local manufacturing
– Curbing state government debt
– Boosting the struggling property market

Looking Ahead to 2025

China is gearing up for further fiscal stimulus in 2025, planning to increase the GDP deficit and debt issuances.

Anticipating trade challenges from the U.S. under President-elect Donald Trump, who plans to enforce trade tariffs, Beijing is expected to adopt more extensive stimulus strategies. Furthermore, efforts will be directed towards boosting private consumption as deflation remains a significant concern for the economy.

A recent Reuters poll predicts that China’s GDP will decline to 4.5% in 2025, given the looming trade challenges.