During the last quarter of last year, October to December, the economy grew by 5.4 percent compared to the same period the year before. It was the highest rate in a single quarter in 1.5 years – and better than expected at 5 percent, according to Bloomberg.
Industrial production in particular was unexpectedly strong at the end of the year, with a growth of 6.2 percent in December compared to the same month last year. This can be partly explained by global companies maximizing orders before Trump takes over the White House.
The economy was "overall stable" in 2024, according to China's national statistics agency in a statement.
"But we also see that the negative impact from a changing world is deepening, domestic demand is insufficient, some companies are facing difficulties with production and operation, and the economy is still facing several difficulties and challenges".
Export a bright spot
The manufacturing industry was a strong engine for growth in 2024. Industrial production increased by 5.8 percent compared to a year earlier. The total retail sales of consumer goods increased by 3.5 percent.
A bright spot was exports – which increased by 7.1 percent on an annual basis.
This means that the biggest problem this year will be the US tariffs, says Jaqueline Rong, economist with a focus on China at bank BNP Paribas, to Bloomberg.
The incoming US President Donald Trump has warned of trade tariffs of up to 60 percent on Chinese goods when he takes office in January.
Rolled out stimulus measures
China's imports increased by 2.3 percent in 2024.
The country has struggled with weak consumption and deflationary pressure since the recovery after the pandemic went slower than expected. Additionally, the debt crisis in the important real estate sector has continued.
In 2023, China's economy grew by 5.2 percent and economists predict that growth will slow down further in the coming years.
Beijing has rolled out a range of stimulus measures during the past year to kick-start the economy, including cutting interest rates and reducing banks' reserve requirements.
At the same time, an aging population puts additional economic pressure. In 2024, the population decreased for the third year in a row, according to official statistics.
At the end of the year, China had a population of 1,408 million people, which is a decrease of 1.39 million compared to the previous year.
