China's Surprising Economic Growth Exceeds Expectations

China's economy grew by 5.4% in the fourth quarter, surpassing analyst expectations, and met the government's annual growth target. This growth was driven largely by industrial output, despite concerns over U.S. trade tariffs. However, the economic outlook remains uncertain with potential tariff risks looming.

In a surprising turn, China's economy expanded by 5.4% in the fourth quarter compared to the previous year, as reported by official data on Friday. This growth not only exceeded analysts' predictions but also aligned with the government's annual growth objectives.

Economist Woei Chen Ho from UOB Singapore attributed this unexpected growth primarily to the industrial sector's performance in December. He noted the possibility of front-loading production and exports ahead of U.S. President-elect Donald Trump's return to office, warning that such growth may not be sustainable in the future.

While positive signs are visible, concerns linger about the impact of potential U.S. trade tariffs set to commence next year. Investment strategist Charu Chanana from Saxo in Singapore highlighted that the stimulus measures have shown some effectiveness, but structural challenges and external tariff pressures still present significant hurdles for China's long-term economic trajectory.