China's economy expanded by 5% in 2024, as confirmed by the National Bureau of Statistics on Friday. The announcement, made in both Hong Kong and Shanghai, revealed a fourth-quarter GDP growth of 5.4%. This aligns with the Chinese government's target and the estimate given by President Xi Jinping in his New Year's Eve speech, where he stated the economy grew "about 5%" last year. However, China faces several challenges, including new U.S. tariffs, a persistent property crisis, and a frugal consumer mindset affecting prices.
The economic growth rate marks a significant achievement for China, meeting the expectations set by its leadership. President Xi Jinping highlighted this growth as a focal point in his recent address, emphasizing its alignment with government projections. The fourth-quarter expansion of 5.4% played a crucial role in achieving the annual growth rate, showcasing the country's resilience amidst global uncertainties.
Despite these positive figures, the Chinese economy confronts mounting obstacles. The imposition of fresh U.S. tariffs poses a significant threat to China's trade dynamics. Additionally, the enduring property crisis continues to affect economic stability, with the real estate sector struggling to regain its footing. As a result, consumer confidence remains cautious, with a frugal mindset persisting across the nation. This cautious spending behavior has exerted downward pressure on prices, adding another layer of complexity to China's economic landscape.
The announcement of the growth rate underscores China's commitment to its economic objectives. The government had set a target for economic growth, which the 5% expansion achieved. This accomplishment reflects strategic planning and execution amid challenging global conditions.