China's economy expands 5% in 2024, reaching target helped by strong exports, stimulus measures

Workers inspect items at a chip maker in Binzhou city in east China's Shandong province on Wednesday, Jan. 15, 2025. (Chinatopix Via AP)

HONG KONG (AP) — China’s economy expanded at a five per cent annual pace in 2024, achieving Beijing’s target of “around five per cent” growth helped by strong exports and recent stimulus measures.

In quarterly terms, the economy grew 5.4 per cent in October-December, the government reported Friday.

Exports accelerated as companies and consumers rushed to beat potential tariff hikes incoming President-elect Donald Trump may impose on Chinese goods.

The world’s second largest economy has struggled with weaker consumer spending and resulting deflationary pressures as its recovery after the COVID 19 pandemic faltered and the property sector, once a main driver of business activity, fell into a downturn.

The Chinese economy grew at a 5.2 per cent annual rate in 2023, and economists have forecast that it will slow further in coming years.

Trump, who will be inaugurated next week, has pledged to increase U.S. import duties on Chinese goods.

This week, the Biden administration also imposed further restrictions on exports of advanced semiconductors and technology as it sought to maintain its lead on advanced technologies and block China’s access.

The ruling Communist Party has rolled out a series of stimulus measures, including reducing banks’ reserve requirement ratios, cutting interest rates and frontloading billions from its budget in 2025 to fund construction projects. It has ordered banks to lend to beleaguered property developers that were left mired in debt after authorities cracked down on excess borrowing.

Beijing has also expanded a trade-in scheme for consumer goods and raised the wages of millions of government workers to revive domestic demand.

Zen Soo, The Associated Press