Investing.com– China’s economy grew more than expected in the fourth quarter of 2024, gross domestic product data showed on Friday, as Beijing took several stimulus measures aimed at supporting growth.
Growth rose 5.4% year-on-year in the three months to December, beating expectations of 5% and faster than the 4.6% seen in the previous quarter, government data showed.
It rose 1.6% quarter-on-quarter, in line with expectations.
It reached 5%, in line with Beijing’s 5% growth target. The Chinese economy grew by 5% for the second year in a row, with Beijing setting a similar target for 2025.
Friday’s reading showed that recent stimulus measures from Beijing – rolled out since late September – were starting to bear fruit. The government unveiled its most aggressive round of stimulus measures during the quarter, aimed primarily at supporting local manufacturing, reining in state government debt, and boosting the lagging property market.
China was also set for more fiscal stimulus in 2025, with a planned increase in the GDP deficit and an increase in debt issuance.
Beijing is expected to meet even more aggressive stimulus under President-elect Donald Trump, given the trade trends from the US.
Trump takes office this Monday, and has vowed to impose tough trade tariffs on China from “day one” of his second term. Such measures are expected to provoke retaliation from China as well as increased enthusiasm.
A particular point of focus will be on Chinese measures to boost private consumption. Inflation has been a heavy burden on the economy in the last two years.
A Reuters poll recently showed that China’s GDP is expected to fall by 4.5% in 2025, amid upbeat business sentiment.
