China's Economic Resurgence: 2024's Unexpected Growth Amidst Trade Tensions

China's economy exceeded expectations in 2024, growing 5.0% due to government stimulus, despite looming U.S. trade tensions and weak domestic demand. Strong fourth-quarter GDP and industrial output highlighted growth, while exports risk slowing as the yuan faces pressure amidst potential tariffs from returning U.S. leadership. Retail sales improved, though unemployment rose slightly.


Devdiscourse News Desk | Updated: 17-01-2025 07:49 IST | Created: 17-01-2025 07:49 IST
China's Economic Resurgence: 2024's Unexpected Growth Amidst Trade Tensions
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In a surprising turn, China's economy wrapped up 2024 on a stronger note than analysts anticipated, buoyed by a series of government stimulus measures. Yet, the looming threat of a renewed trade war with the United States and ongoing weak domestic demand could pose challenges to maintaining growth momentum this year.

Data from the National Bureau of Statistics revealed that the world's second-largest economy expanded by 5.0% across 2024, aligning with the government's growth target. The fourth quarter notably saw a 5.4% growth increase compared to the previous year, beating analysts' forecasts and marking the fastest expansion since mid-2023.

While exports played a key role in driving a record trade surplus, they face potential decline as the U.S. president-elect's proposed tariffs take effect next week. Policymakers in China have pledged further stimulus, yet the scale of response hinges on the U.S.'s trade strategy. Meanwhile, consumer activity showed signs of improvement, with industrial output and retail sales gaining speed towards the end of the year, though a slight rise in unemployment hints at ongoing challenges.

(With inputs from agencies.)

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