Noor Trends News, Technical Analysis, Educational Tools and Recommendations
China’s GDP is projected to grow by approximately 5% in 2024, aligning with the government’s formal growth target, according to President Xi Jinping. This reinforces confidence in the resilience of the world’s second-largest economy despite a year of economic uncertainty.
- Stability Amid Challenges: Speaking at a New Year event, Xi highlighted that the economy remained stable and progressed steadily throughout 2024, with effective risk management in critical areas. Employment and price stability were also noted as key achievements.
- Final GDP Data Pending: The exact GDP figure will be released next month, but economists currently predict a 4.8% growth for 2024.
Stimulus Measures Drive Growth Target Achievability
Initially seen as an ambitious “target without a plan,” the 5% growth goal became more realistic after substantial stimulus measures introduced since late September. These included:
- Infrastructure investments.
- Support for struggling sectors such as real estate.
- Fiscal spending to boost domestic demand.
Outlook for 2025
- Continuing Economic Support: Xi emphasized the need for proactive macroeconomic policies to sustain growth into 2025.
- Growth Target: China is expected to set a 2025 growth target similar to 2024’s 5%.
- Challenges Ahead:
- Geopolitical Risks: The potential for heightened US tariffs under President-elect Donald Trump.
- Global Economic Pressures: Uncertain global demand may impact export-driven growth.
Key Takeaways
- Policy Focus: A steady hand in macroeconomic management has positioned China for consistent growth, with leaders signaling a commitment to further support in 2025.
- Global Impact: As the world’s second-largest economy, China’s sustained growth will play a crucial role in stabilizing global markets amid geopolitical uncertainties.
- Legislative Plans: The official 2025 growth target will be unveiled during the March legislative sessions, offering clearer insights into the government’s strategy for the upcoming year.
This proactive approach by Beijing underscores its resolve to navigate both domestic and international challenges, solidifying its position as a key driver of global economic stability.
