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The Chinese economy had fared even better than its forecast of 5.0% at the same quarter last year with the report of an annualized increase of 5.4% in the fourth quarter of 2024. The increase came in contrast with previous quarters where declines were reported; it reported an annualized rise of 4.6% in the third quarter, 4.7% in the second quarter, and 5.3% in the first quarter.
The whole year of 2024 experienced a GDP growth rate of 5.0% in China. This overall growth was due to various support measures introduced by the government throughout the year.
Retail sales during December 2024 were up by 3.7% against December 2023, and this was ahead of the forecast increase of 3.5%. Industrial production is 6.2% up year to year, versus the forecast growth rate of 5.4%. This, therefore is an indication domestic production continues to be buoyant despite weakness in demand.
The Chinese government has been working hard to boost the economy through policies to improve the real estate market and encourage consumer spending. These efforts come amid challenges like deflation and lower business confidence.
Economists currently expect China's GDP growth target in 2025 to stand at about 5%. Others, however, estimate it at between 3% and 4.5% simply because that mainly depends on the effectiveness of how the policies will be implemented as well as the development of the external economic forces.
In general, the data are cautiously positive, showing that the economy will overcome various challenges, both internally and externally, as it tends towards sustainable growth.
