HONG KONG (AP) 鈥� China's economy expanded at a 5% annual pace in 2024, slower than the year before but in line with Beijing鈥檚 target of 鈥渁round 5%鈥� growth, helped by strong exports and recent stimulus measures.
In quarterly terms, the economy grew 5.4% in October-December, the government reported Friday.
accelerated as companies and consumers rushed to beat potential tariff hikes incoming President-elect Donald Trump may impose on Chinese goods.
鈥淭he national economy was generally stable with steady progress and new achievements were made in high-quality development,鈥� according to the report by the National Bureau of Statistics on Friday.
鈥淧articularly, with a package of incremental policies being timely rolled out, the social confidence was effectively bolstered and the economy recovered remarkably,鈥� it said.
Manufacturing was a strong engine for growth last year, with industrial output jumping 5.8% from a year earlier. Total retail sales of consumer goods grew 3.5% at an annual rate.
Exports expanded 7.1% in annual terms, while imports grew 2.3%
The world鈥檚 second largest economy has with weaker consumer spending and resulting deflationary pressures as its recovery after the COVID 19 pandemic faltered and the property sector, once a main driver of business activity, fell into a downturn.
The Chinese economy grew at a 5.2% annual rate in 2023, and economists have forecast that it will slow further in coming years.
China鈥檚 population also is aging and declining, adding to pressures on growth. The government reported Friday that the for a third straight year in 2024, to 1.408 billion at the end of 2024, a decline of 1.39 million from the previous year.
The rising cost of living has causing young people to put off or rule out marriage and childbirth while pursuing higher education and careers, accentuating the impact of birth control policies that once limited most families to one child each.
Some economists say the economy is growing at a slower pace than shown in official estimates.
鈥淭he precise achievement of the official growth target is highly dubious at a time when most indicators of economic activity and financial markets are flashing red,鈥� Eswar Prasad, an economics professor at Cornell University, said in an emailed comment.
鈥淭he economy continues to be beset by a combination of weak domestic demand and persistent deflationary pressures, in addition to a hostile external environment that could limit exports,鈥� he said.
Trump, who will be inaugurated next week, has pledged to increase U.S. import duties on Chinese goods. This week, the Biden administration also imposed further restrictions on exports of advanced semiconductors and technology as it sought to maintain the U.S. lead on advanced technologies and block China鈥檚 access.
The ruling Communist Party has rolled out a series of , including reducing banks鈥� reserve requirement ratios, cutting interest rates and from its budget in 2025 to fund construction projects. It has ordered banks to lend to beleaguered property developers that were left mired in debt after authorities cracked down on excess borrowing.
Beijing has also expanded a and raised the wages of millions of government workers to revive domestic demand.
Those incremental moves need to be accompanied by broader structural reforms, some economists say, that will improve productivity and make the economy less reliant on construction and export manufacturing. In particular, private businesses remain wary of boosting investment or hiring after years of policy shifts that have added to uncertainty over their role in the economy.
Scant social safety nets, meanwhile, lead families to save rather than spend, and falling housing prices and weak stock prices have hurt household wealth, compounding the problem.
鈥淐hina needs a strong and multi-pronged policy package to revive growth momentum,鈥� Prasad said. Such a package would need to include substantial and well-targeted monetary and fiscal stimulus, complemented by reforms and other measures to revive private sector confidence."
Zen Soo, The Associated Press
