China's Economy Grows 5%, Q4 GDP Beats Forecasts Amid Trade War Threat

Jan 17, 2025, 01:36 PM

China's economy grew by 5% in 2024, meeting the government's target, according to data released by the National Bureau of Statistics on Friday. This GDP growth was slightly above the median estimate of 4.9% and was bolstered by a stronger-than-expected fourth quarter, where GDP expanded by 5.4% year-on-year, surpassing forecasts. Industrial output rose 6.2% year-on-year in December, beating estimates of 5.4%, while retail sales increased by 3.7%, exceeding expectations of 3.5%. Fixed-asset investment grew by 3.2% for the year, slightly below the estimated 3.3%. However, the unemployment rate climbed to 5.1% in December, above the expected 5.0%, and the population shrank for the third consecutive year in 2024. Despite the solid economic performance, concerns remain over potential challenges, including the threat of new trade tariffs from the United States under President Donald Trump, weak domestic demand, and skepticism among some economists and citizens about the official data. President Xi Jinping had stated on New Year’s Eve that the country was expected to meet the goal of around 5% growth.