China's GDP growth in 2024 reached the target 5%

China's GDP grew by 5.4% in the fourth quarter of 2024, exceeding the projected 5% and figures from previous quarters (5.3%, 4.7% and 4.6%). This made it possible to achieve annual economic growth of 5%, which corresponds to the official target. 

Increased economic activity was due to a policy change in September last year, but large-scale incentives are needed for further recovery. At the same time, the statistical bureau warned of weak domestic demand and the impact of external factors, calling for an active macroeconomic policy.

Positive data strengthened the CSI 300 index by 0.15%, the yuan exchange rate to 7.3398 per dollar, and the yield on 10-year bonds decreased by 2 basis points to 1.638. December growth in retail sales was 3.7%, industrial production – 6.2%, but investments in fixed assets increased by only 3.2% over the year. Investments in real estate decreased by 10.6%. The unemployment rate rose to 5.1%.

Incomes of urban residents increased by 4.4%, in rural areas – by 6.3%. The representative of the statistical bureau noted weak consumer activity and a possible increase in external pressure in 2025. Inflation in the country remains low, and wholesale prices continue to decline for the 27th month in a row.