China’s economy recorded a 5.4% year-on-year expansion in the fourth quarter of 2024, exceeding market expectations as government stimulus measures began to take effect.
The result marked an improvement from the 4.6% growth recorded in the previous quarter and was higher than the 5% forecast by economists.
The NBS highlighted that, despite the stronger finish to the year, external pressures on the economy were intensifying while domestic demand remained insufficient. It called for "more proactive and effective macro policies” to address these challenges.
China's retail sales rose by 3.7% in December compared to the same period last year, surpassing expectations of 3.5%.
Industrial output also exceeded forecasts, expanding by 6.2% year-on-year in December, which highlighted the country's growing production capabilities.
However, full-year fixed asset investment increased by just 3.2%, slightly missing projections of 3.3%.
The real estate sector continued to be a significant drag on growth, with investment in the sector falling by 10.6% compared to the January to November period.
The urban unemployment rate edged up to 5.1% in December from 5.0% in November, reflecting ongoing challenges in the labour market.
Disposable income for urban residents grew by 4.4% in 2024, while rural income increased by 6.3%, highlighting disparities in income growth between urban and rural populations.
Meanwhile, China’s population saw a decline of 1.39 million in 2023, bringing the total population to 1.408 billion, continuing a demographic trend that poses long-term challenges.
In response to economic headwinds, Chinese authorities introduced a series of stimulus measures. These included a five-year fiscal package worth ¥10 trillion (A$2.19 trillion), interest rate cuts, and expanded programmes to encourage consumer spending on vehicles and home appliances.
Top government officials have also pledged to maintain proactive fiscal policies and adopt a moderately loose monetary stance for 2025.