By John Meyer, consultant in financial affairs – Eurasia Business News, January 17, 2025. Article No 1381.

China’s economy achieved a 5.0% growth rate for the year 2024, as reported by the National Bureau of Statistics. This figure aligns with the government’s target of “around 5%” and was bolstered by a strong performance in the fourth quarter, where GDP grew by 5.4% year-on-year, surpassing market expectations.

Fourth Quarter Surge: The 5.4% growth in Q4 helped lift the overall annual growth rate, demonstrating the effectiveness of recent stimulus measures implemented by the government to stabilize the economy amid challenges such as a real estate slump and consumer uncertainty.

Economic Context: Despite meeting its growth target, concerns remain about the sustainability of this recovery. The statistics bureau emphasized the need for “more proactive and effective macroeconomic policies” to address ongoing issues such as inadequate domestic demand and external economic pressures.

Comparison with Previous Years: This year’s growth is a decline from the 5.4% recorded in 2023, reflecting ongoing challenges in the economic landscape that have persisted since the pandemic.

Although the growth of the Chinese economy slowed down (in 2023 the figure was 5.2%), it turned out to be better than expected: for most of 2024, the country’s GDP was expected to increase by 4.6%.

Read also : Gold : Build Your Wealth and Freedom

Overall, while China’s economy met its growth target for 2024, analysts caution that maintaining momentum will require continued policy support to navigate existing economic hurdles.

Advertisements

In 2025, sustainable growth will be more difficult to achieve: in the absence of reliance on external demand, structural reforms and broader support for consumption are needed. In addition, the U.S. president elect Donald Trump is expected to impose nearly 40% tariffs on Chinese imports starting in early 2025. These restrictive measures will add pressurce on China’s GDP growth in 2025.

This move, part of his “America First” trade policy, aims to reshape global trade dynamics and could significantly impact China’s economy, potentially reducing its growth by up to 1-1.5 percentage point according to economists surveyed.

Taking into account the expected slowdown in export growth and the restrained expansion of imports, the World Bank expects that China’s GDP will grow by 4.5% by the end of 2025 (the estimate has been raised by 0.4 points) after an increase of 4.9% in 2024 (according to the bank’s estimates). The IMF, citing the same arguments, predicts economic growth of 4.6% this year, and its increase in 2024 is estimated at 4.8%.

Our community already has nearly 145,000 readers!

Subscribe to our Telegram channel

Follow us on Telegram, Facebook and Twitter

© Copyright 2025 – Eurasia Business News. Article no. 1381.