China’s economy expanded by 5 percent in 2024, reaching the annual growth target of around 5 percent, according to official data released by the National Bureau of Statistics (NBS) on Friday. This growth reflects a steady recovery amid various challenges faced throughout the year.
The country’s gross domestic product (GDP) totaled 134.91 trillion yuan ($18.41 trillion) for the full year, highlighting the robust performance of the world’s second-largest economy.
Strong Fourth Quarter Performance
The economy expanded by 5.4 percent in the fourth quarter, marking the strongest quarterly growth since the second quarter of 2023. This surge was bolstered by a series of policy measures introduced in the latter part of the year, aimed at bolstering domestic demand, supporting enterprises, stabilizing the real estate market, and revitalizing the capital market.
Wen Bin, chief economist at China Minsheng Bank, noted the significant impact of these initiatives. “The combined effects of a package of incremental policies and existing measures have effectively boosted China’s social confidence and caused market demand to significantly rebound, playing a decisive role in achieving the annual economic goals,” he wrote in a research note.
Industrial Production and Investment Drive Growth
Key economic indicators pointed to positive momentum across various sectors. Industrial production experienced robust growth, particularly in equipment manufacturing and high-tech industries. The added value of large industrial enterprises increased by 5.8 percent year on year, while the added value of high-tech manufacturing surged by 8.9 percent.
Fixed asset investment expanded by 3.2 percent, driven by accelerated growth in high-tech industries. This investment is expected to further enhance the country’s innovation capabilities and industrial upgrading.
Resilient Consumer Spending and Service Sector Expansion
Consumer spending demonstrated resilience despite global economic uncertainties. Total retail sales of consumer goods increased by 3.5 percent year on year, with online retail sales surging by 7.2 percent. The service sector also contributed significantly to growth, with its added value expanding by 5 percent.
Foreign Trade Supports Economic Stability
Foreign trade continued to support economic growth, with the total import and export of goods increasing by 5 percent year on year. Trade with Belt and Road partner countries grew by 6.4 percent, accounting for over half of the total trade volume. This highlights China’s deepening economic ties with countries and regions along the Belt and Road Initiative.
Outlook and Future Efforts
Kang Yi, commissioner of the NBS, stated that these figures indicate the Chinese economy has maintained a steady growth trajectory despite facing various challenges. He emphasized the need for sustained efforts to promote economic recovery and push for high-quality development.
As China continues to implement policies aimed at strengthening its economic foundations, the outlook for 2025 remains cautiously optimistic. Ongoing support for key industries and consumer markets is expected to drive further growth and contribute to global economic stability.
