China Powers Up: Economic Growth Surpasses Expectations Amidst Trade Tensions

China's economy ended 2024 stronger than anticipated, rising by 5.0% due to stimulus measures. Despite fears of a potential trade war with the U.S. and soft domestic demand, indicators like industrial output and retail sales showed surprising growth. Policymakers face pressure to maintain this momentum amidst uncertainties.

China's economy closed 2024 on a high note, with a growth rate of 5.0%, fueled by recent stimulus measures. This performance exceeds the government's target and analysts’ expectations despite looming trade war threats with the United States and lackluster domestic demand.

The robust growth figures, highlighted by a 5.4% GDP rise in the last quarter, suggest a strengthened external sector. Industrial production and retail sales have shown a surprising uptick, although investment in the property sector remains a concern, indicating mixed economic signals.

Market reactions to this data were positive, with minor upticks in major indexes. However, economists emphasize the need for continued policy support to navigate potential U.S. tariff impacts. As China's policymakers prepare for a crucial March congress meeting, strategies to sustain growth amid global uncertainties are expected to emerge.

(With inputs from agencies.)