China Q4 GDP grows more than expected on stimulus support; meets annual target
China’s economy grew more than expected in the fourth quarter of 2024, gross domestic product data showed on Friday, as Beijing doled out a slew of stimulus measures aimed at supporting growth.
GDP grew 5.4% year-on-year in the three months to December, more than expectations of 5% and picking up sharply from the 4.6% seen in the prior quarter, government data showed.
GDP grew 1.6% quarter-on-quarter, in line with expectations.
This brought annual GDP to 5%, just in line with Beijing’s 5% growth target. The Chinese economy grew 5% for the second consecutive year, with Beijing having set a similar target for 2025.
Friday’s reading showed that recent stimulus measures from Beijing- doled out since late-September- were beginning to bear fruit. The government had unveiled its most aggressive round of stimulus measures during the quarter, aimed largely at supporting local manufacturing, curbing state government debt, and also boosting the laggard property market.
China was also seen gearing up for more fiscal stimulus in 2025, with planned increases in the GDP deficit and increased debt issuances.
Beijing is expected to dole out even more aggressive stimulus in the face of trade headwinds from the U.S., under President-elect Donald Trump.
Trump takes office this Monday, and has vowed to impose steep trade tariffs on China from “day one” of his second term. Such measures are expected to draw retaliatory action from China, as well as increased stimulus.
A particular point of focus will be on Chinese measures to boost private consumption. Deflation has remained a major weight on the economy over the past two years.
A Reuters poll recently showed that China’s GDP is expected to fall to 4.5% in 2025, amid heightened trade headwinds.
