China’s GDP grew 5% in 2024, reaching a record 134.9 trillion yuan ($18.77 trillion). While meeting government targets, growth remains one of the slowest in decades amid economic challenges, trade tensions, and skepticism over official data.
China’s economy expanded by 5% in 2024, with its gross domestic product (GDP) reaching a record 134.9 trillion yuan (approximately $18.77 trillion), according to data released by the National Bureau of Statistics (NBS) in January 2025. While the growth rate met government expectations, it remains one of the slowest in decades, reflecting ongoing domestic and global economic challenges.
NBS head Kang Yi described the growth as "hard-won," highlighting China's resilience in the face of external pressures and domestic headwinds. However, independent analysts have expressed skepticism about the accuracy of China's economic data, pointing to low consumer inflation and weak tax revenues as indicators of a potentially weaker economic state than officially reported.
Drivers of Growth and Structural Challenges
The revival of domestic consumption played a key role in economic expansion, supported by government stimulus measures, including subsidies, tax incentives, and infrastructure investments. However, despite these efforts, many Chinese citizens report feeling worse off, as industrial and export-driven growth has not significantly boosted consumer well-being.
China’s high-tech industries saw notable expansion. Production of new energy vehicles, integrated circuits, and industrial robots increased by 38.7%, 22.2%, and 14.2%, respectively. Investment in high-tech industries rose by 8%, reflecting the government’s focus on technological advancement. However, concerns persist over the impact of US trade restrictions on semiconductor exports, which could challenge future growth in advanced manufacturing.
China’s Belt and Road Initiative (BRI) projects continued to stimulate trade and investment ties, strengthening the country’s global economic influence. Meanwhile, the country’s export-driven growth model faced headwinds, with economists warning about the sustainability of trade-dependent expansion amid weak global demand. The potential for new US tariffs on Chinese goods adds further uncertainty.
Policy Measures and Economic Risks
Pro-growth government policies played a stabilising role in 2024. The policy package introduced after the Communist Party’s September 2024 meeting, combined with monetary easing, infrastructure spending, and support for small and medium enterprises (SMEs), helped to cushion economic fluctuations. Looking ahead, the government plans to adopt more proactive fiscal policies and moderately loose monetary measures in 2025 to expand domestic demand.
Despite these efforts, structural challenges persist. Youth unemployment remains elevated, while China’s property market downturn continues to impact consumer sentiment and financial stability. Additionally, the accuracy of China’s official economic data has been questioned by external analysts, who point to low inflation and tax revenue trends as signs that the real economy may be weaker than reported.
Looking Ahead: Growth Prospects for 2025
China aims to achieve stable and sustainable growth through structural reforms, technological innovation, and domestic market expansion. However, concerns over global demand, trade tensions, and internal economic risks remain key challenges.
A recent global opinion poll found that over 90% of respondents from 46 countries expressed optimism about China’s long-term growth prospects. However, foreign investor confidence remains mixed, with some concerns over regulatory unpredictability and market access restrictions. As China navigates economic transitions, its commitment to high-quality development and global engagement will be crucial in shaping its future economic trajectory.
Europe is increasingly viewing the South Caucasus not as a region of frozen conflicts, but as a space of opportunity, stability and strategic connecti...
Israel will reopen Gaza’s Rafah border crossing with Egypt on Sunday (1 February), allowing limited movement of Palestinians in both directions afte...
If Fars News Agency is to be believed, Iran's neighbours should be on alert. The agency, which reportedly mirrors the views of Iran's Islamic Revoluti...
Turkish state broadcaster TRT reported on Thursday (29 January) that six people had been arrested by Turkish authorities for allegedly conducting espi...
The Syrian government and the Kurdish-led Syrian Democratic Forces (SDF) declared a ceasefire deal on Friday (30 January) that foresees a phased integ...
U.S. President Donald Trump has warned Britain against doing business with Beijing. His comments came as Prime Minister Keir Starmer highlighted the economic benefits of resetting relations with China during a visit on Friday (30 January).
Chinese authorities say they've carried out capital punishment against a group of individuals tied to notorious telecommunications fraud syndicates operating across the southern border, according to state news agency Xinhua.
China agreed to relax rules to allow some visa-free travel for British citizens on Thursday (29 January) during a visit by UK Prime Minister Keir Starmer to Beijing. It's part of a partnership deal which Westminster hopes will help expand its service sector.
China has approved the first batch of Nvidia's H200 artificial intelligence (AI) chips after Washington allowed limited sales, paving the way for major Chinese technology companies to gain access to processors that remain far ahead of domestic alternatives.
Liverpool confirmed direct qualification to the UEFA Champions League round of 16 with a 6-0 win over Qarabağ at Anfield in their final league-phase match. Despite the setback, Qarabağ secured a play-off spot, with results elsewhere going in the Azerbaijani champions’ favour on the final matchday.
China is supplying key industrial equipment that has enabled Russia to speed up production of its newest nuclear-capable hypersonic missile, an investigation by The Telegraph has found, heightening concerns in Europe over Moscow’s ability to threaten the West despite international sanctions.
Storm Kristin has killed at least five people and left more than 850,000 residents of central and northern Portugal without electricity on Wednesday (28 January), as it toppled trees, damaged homes, and disrupted road and rail traffic before moving inland to Spain.
U.S. Secretary of State Marco Rubio said the Iranian government is likely weaker than at any point in recent history, warning that protests could reignite despite a violent crackdown that has killed thousands.
Russian President Vladimir Putin said he was ready to assist in rebuilding Syria’s war-damaged economy as the country's interim President Ahmad al-Sharaa made his second visit to Moscow in less than four months on Wednesday (28 January).
U.S. stock markets finished mixed on Wednesday (28 January) as investors reacted calmly after the Federal Reserve left interest rates unchanged, a decision that had been widely expected and largely priced in.
The S&P 500 edged to a record closing high on Tuesday, marking its fifth consecutive day of gains, as strong advances in technology stocks offset a sharp selloff in healthcare shares and a mixed batch of corporate earnings.
Chevron is in talks with Iraq’s oil ministry over potential changes to the commercial framework governing the West Qurna 2 oilfield, one of the world’s largest producing assets, after Baghdad nationalised the field earlier this month following U.S. sanctions imposed on Russia’s Lukoil.
Argentina's economic activity shrunk 0.3% in November compared with the same month last year, marking the first monthly contraction of 2025, data from Argentina's national statistics agency showed on Wednesday.
Wall Street closed sharply lower on Tuesday as global markets fell after U.S. President Donald Trump’s new tariff threats against Europe unsettled investors and revived fears of renewed volatility.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment