China’s fourth-quarter GDP rises more than expected on stimulus support; meets the annual goal of By Investing.com

Investing.com – China’s economy grew more than expected in the fourth quarter of 2024, gross domestic product data showed on Friday, as Beijing enacted a series of stimulus measures aimed at supporting growth.

it rose 5.4% year-on-year in the three months to December, beating expectations of 5% and up sharply from 4.6% in the previous quarter, government data showed.

rose 1.6% on a quarterly basis, in line with expectations.

That brought it to 5%, right in line with Beijing’s 5% growth target. China’s economy grew by 5% for the second consecutive year, and Beijing has set a similar target for 2025.

Friday’s reading showed that recent stimulus measures from Beijing – which have been handed out since late September – have started to bear fruit. The government unveiled its most aggressive round of stimulus measures during the quarter, aimed mainly at supporting local manufacturing, reining in national government debt and also boosting the lagging housing market.

China is also preparing for more fiscal stimulus in 2025, with a planned increase in the GDP deficit and increased debt issuance.

Beijing is expected to issue even more aggressive stimulus in the face of trade headwinds from the US under President-elect Donald Trump.

Trump takes office this Monday and has vowed to impose harsh trade tariffs on China from “day one” of his second term. Such measures are expected to draw retaliation from China, as well as increased incentives.

Special focus will be on China’s measures to stimulate personal consumption. Deflation has remained a major drag on the economy over the past two years.

A Reuters poll recently showed that China’s GDP is expected to fall to 4.5% in 2025, amid heightened trade barriers.