China’s GDP grows faster than expected in fourth quarter on stimulus measures; Meets Investing.com’s annual target

Investing.com – China’s economy grew more than expected in the fourth quarter of 2024, gross domestic product data showed on Friday, as Beijing rolled out a series of stimulus measures to support growth.

The economy grew 5.4% year-on-year in the three months to December, better than expectations of 5% and up sharply from 4.6% in the previous quarter, government data showed.

grew by 1.6% compared to the previous quarter, which was in line with expectations.

This amounted to 5%, exactly in line with Beijing’s growth target of 5%. China’s economy grew 5% for the second year in a row, with Beijing setting a similar target for 2025.

Friday’s reading showed that Beijing’s recent stimulus measures, implemented since late September, were beginning to bear fruit. The government unveiled its most aggressive round of stimulus measures during the quarter, aimed primarily at supporting local manufacturing, curbing national debt and also boosting the flagging real estate market.

China was also preparing for further fiscal stimulus in 2025, with planned GDP deficit increases and increased bond issuance.

Beijing is expected to take even more aggressive stimulus measures amid trade policy headwinds from the US under President-elect Donald Trump.

Trump takes office this Monday and has vowed to impose high trade tariffs against China from “day one” of his second term in office. Such measures are expected to lead to retaliation from China as well as increased economic stimulus.

A particular focus will be on Chinese measures to boost private consumption. Deflation has remained a major drag on the economy over the past two years.

A Reuters poll recently showed China’s GDP is expected to fall to 4.5% in 2025 amid increasing trade headwinds.