China’s economy hits 5% growth target but rate among slowest in decades
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Latter part of 2024 ‘recovered remarkably’ after stimulus measures, says National Bureau of Statistics. China’s economy grew by 5% in 2024, in line with government targets but at the slowest rate since 1990 outside the Covid pandemic, according to official data.
Growth accelerated through the year, with an expansion of 5.4% in the final quarter, up from 4.6% in the third quarter, according to Beijing’s National Bureau of Statistics. The bureau reported “steady progress amid stability” but pointed to a “complicated and severe environment with increasing external pressures and internal difficulties”.
The statistics bureau said the economy had “recovered remarkably” in the latter part of 2024, after the government announced a series of stimulus measures. These included interest rate cuts, as well as a trade-in scheme for consumer goods, and tax incentives for property purchases.
Across 2024 as a whole, industrial output was up by 5.8%, helped by a strong performance in manufacturing, but retail sales increased by only 3.5%, despite policies aimed at stimulating domestic demand. Beijing has been attempting to rebalance growth away from a heavy dependence on exports, towards domestic consumption. However, a property downturn, and the after-effects of the Covid pandemic, appear to have continued to weigh on sentiment.
Lynn Song, a China economist at ING, said: “The key question is if we can see consumer confidence bottom out and begin a meaningful recovery. Pessimism has grown quite entrenched as of late, and it will take a lot of effort to break out of the doldrums.”.
