China’s economy expanded by 5.4% year-on-year in Q4 2024, a significant acceleration from the 4.6% growth recorded in Q3. This growth exceeded market expectations of 5.0%, marking the strongest annual growth rate in 1.5 years. The country’s economic recovery was bolstered by a series of stimulus measures introduced since September, aimed at boosting recovery and restoring business and consumer confidence.

Key Economic Indicators Show Mixed Results

In December China’s economy, industrial output growth surged to an 8-month high, reflecting stronger manufacturing activity. Additionally, retail sales rebounded from a 3-month low, signaling a recovery in consumer demand. However, the unemployment rate reached a 3-month peak, highlighting persistent labor market challenges despite the overall economic expansion.

Strong Trade Performance

On the trade front, China saw a double-digit rise in exports in December, marking the ninth consecutive month of growth and reaching the highest export value in 3 years. This surge was driven by businesses rushing to fulfill shipments ahead of potential tariff hikes under the US Trump administration. Imports also saw an unexpected rise, reaching their highest value in 27 months, suggesting increased domestic demand.

Read More : China Caixin Manufacturing PMI

Full-Year Growth and Investment Trends

For the full year, China’s GDP grew by 5.0%, meeting the government’s 2024 target of around 5% but falling short of the 5.2% growth seen in 2023. Fixed investment rose by 3.2% year-on-year, outpacing the 2023 increase of 3.0%. These results indicate a solid but slightly slower pace of growth compared to the previous year, with investment showing continued strength in driving economic expansion.

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