China Q4 GDP grows more than expected on stimulus support; meets the annual goal of Investing.com

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

grew by 5.4% year-on-year in the three months to December, exceeding expectations of 5% and picking up strongly from the 4.6% seen in the previous quarter, government data showed.

grew 1.6% quarter-on-quarter, in line with expectations.

This brought it to 5%, just in line with Beijing’s target of 5%. China’s economy grew by 5% for the second year in a row, with Beijing setting the same target for 2025.

Friday’s reading showed that the latest stimulus measures from Beijing—issued since late September—were beginning to bear fruit. The government unveiled its strongest stimulus measures of the quarter, aimed mainly at supporting domestic production, reining in government debt, and boosting the sluggish property market.

China is also seen gearing up for more fiscal stimulus in 2025, with a planned increase in the GDP deficit and an increase in credit rates.

Beijing is expected to exert even stronger influence in the face of trade winds from the United States, under President-elect Donald Trump.

Trump takes office this Monday, and has vowed to impose higher trade tariffs on China from “day one” of his second term. Such moves are expected to draw retaliation from China, as well as further incentives.

One issue will focus on China’s efforts to increase private sector spending. Depreciation has been a heavy burden on the economy for the past two years.

A Reuters poll recently showed that China’s GDP is expected to fall to 4.5% in 2025, amid strong trade winds.