China's Economic Growth Surpasses Expectations Amidst Trade Tensions

China's economy grew by 5.0% in 2024, surpassing government's target amid multiple stimulus efforts. Despite the positive growth, concerns linger over a potential U.S. trade war and weak domestic demand, casting doubts on sustained recovery. Economic analysts remain cautious about 2025 outlook due to trade tensions and policy uncertainties.

China's economy concluded 2024 stronger than anticipated, driven by a series of government stimulus measures despite burgeoning fears of a new trade conflict with the United States and subdued local demand.

China's GDP defied predictions by growing 5.0% for the entire year, aligning with the government's target, and surged to 5.4% in the fourth quarter compared to the previous year's quarter, outpacing analysts' expectations.

The Shanghai stock market reacted to the data with a 0.3% rise while the CSI 300 index gained 0.4%. Economists caution that despite current growth metrics, the looming threat of U.S. tariffs and the pressures on domestic demand pose significant risks to future economic stability.

(With inputs from agencies.)