China’s GDP growth has reached a target of 5 percent by 2024

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China’s economy grew 5 percent last year on the back of rising manufacturing, according to official data.

of Economy In the year It “recovered impressively” in the fourth quarter of 2024, according to the Office for National Statistics, growing at an annual rate of 5.4 percent and recovering from slower growth in the third quarter.

“With additional (encouraging) policies . . . Confidence has effectively strengthened and the economy has recovered impressively,” the NBS said in its 2024 GDP data released on Friday.

The annual figure, which slightly beat economists’ forecasts of 4.9 percent, was 5.2 percent growth last year and was the slowest since 1990, excluding years disrupted by the coronavirus.

The data comes as Beijing tries to revive strong growth in its two-speed economy, where strong exports and manufacturing are offset by weak household sentiment.

In September, the central bank announced monetary easing and stock market support. There is also Beijing. He issued a program To refinance local government debt and accelerate stimulus spending targeting infrastructure and other areas.

But economists worry that China is at risk of chronic inflation. Producer prices are in negative territory for more than two years, and consumer prices managed 0.1 percent growth in December.

NBS Director Kang Yi said in a press conference that 2024 can be described as “chaotic with intensified geopolitical conflicts and trade protectionism at high levels.”

Analysts expect Beijing to rubber stamp its official growth target of 5 percent for 2025 when parliament meets in March for the third year in a row. It is expected that they will face challenges Regarding US President Donald Trump’s threat of high tariffs.

“The negative effects of the external environment are increasing. He said that there is not enough domestic demand, Kang, “job and income growth” are under pressure.

Retail sales rose 3.5 percent last year as consumer confidence remained weak amid a housing slump, while industrial production rose 5.8 percent on strong growth in manufacturing.

Housing prices slipped in China’s biggest cities, but new home prices rose in Shanghai.

In another sign of the country’s long-term structural challenges, China’s population will shrink by 1.4mn in 2024, the third straight year of decline.

Frederic Neumann, chief economist for Asia at HSBC, said that while China’s economic growth exceeded expectations, the headline figure “covers up some weaknesses”.

“The increase in growth was actually driven by industrial production, which hints at a front-loading support for exports given US import restrictions,” Neumann said. “That will inevitably come back as the US import restrictions start to bite.”

China’s trade surplus with the rest of the world is a A record of nearly $1tn In the year In 2024, customs data showed last week that thanks to strong export growth, Chinese manufacturers will stockpile production to meet lagging domestic demand. Import growth has been more modest.

“The current Achilles heel in the Chinese economy is certainly the reluctant consumer,” Neumann added. “All of this points to the need for more stimulus, especially to support consumer spending.”

The statement cast doubt on China’s official data, which some analysts say does not reflect the growing weakness in the economy.

Cornell professor Iswar Prasad said: “The Chinese government’s ability to meet its growth target is a victory that further erodes the credibility of official data and, at best, reflects an economy that is still struggling. University and a senior fellow at the Brookings Institution.

Morgan Stanley analysts said better-than-expected growth in the fourth quarter was “likely to be short-lived”, and could soften ahead of the second quarter due to front-loading and insufficient stimulus measures.

“We think that better information has reduced Beijing’s sense of urgency, and that policy can continue to be initiated on the housing and social welfare fronts,” they said in their note.

China’s CSI 300 index rose 0.5 percent in morning trade after mainland-listed blue-chip companies released the data, after opening up earlier in the day.

The benchmark fell about 14 percent from its Oct. 8 peak as stimulus policy announcements capped a rally in stocks.