China’s economy expanded by 5.4% year-on-year in the fourth quarter, outperforming analysts’ forecasts and enabling the government to achieve its annual growth target. The National Bureau of Statistics released the official data on Friday, highlighting the fastest quarterly growth since Q2 2023.
Market analysts polled by Reuters had predicted a 5.0% expansion for Q4, up from the 4.6% growth recorded in Q3. The stronger-than-expected performance is attributed to the impact of various support measures introduced by Chinese policymakers in recent months.
For the full year 2024, China’s GDP grew by 5.0%, matching the government’s target of approximately 5%. This result marginally exceeded the 4.9% growth projected by analysts.
On a quarter-on-quarter basis, GDP rose by 1.6% in the October-December period, consistent with forecasts and an improvement from the revised 1.3% growth recorded in Q3.
In response to a slowing economy, Chinese authorities have rolled out a series of stimulus initiatives since September 2023. These measures aimed to boost growth across key sectors and have shown encouraging results. Policymakers have also signaled their commitment to sustaining these efforts in 2025, especially as U.S. President-elect Donald Trump prepares to return to the White House. Trump has proposed significant tariffs on Chinese goods, raising the stakes for the global economic landscape.
As the world’s second-largest economy, China’s resilience in meeting its growth target is expected to bolster market confidence, though challenges remain in navigating both domestic and international headwinds.