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.
China’s defence ministry dismissed Australia’s complaints over Chinese naval drills between Australia and New Zealand, calling them "hyped up" and "inconsistent with the facts."
San Francisco, February 17, 2025 – OpenAI has terminated a group of Chinese ChatGPT accounts that were reportedly used to edit and debug code for an AI-powered social media surveillance tool.
China's centuries-old treasures have been pulled out of storage to be restored for display at Beijing's Forbidden City and Palace Museum. Meticulous repairs are needed ahead of the museum's 100th anniversary this year.
Apple has removed its advanced data protection tool for UK users after the government demanded access to encrypted data, raising concerns about user privacy and security.
Sudan is facing a worsening cholera outbreak, with 1,351 cases and 58 deaths reported in White Nile State over three days. Contaminated water, linked to conflict-related infrastructure damage, is fuelling the crisis.
China’s defence ministry dismissed Australia’s complaints over Chinese naval drills between Australia and New Zealand, calling them "hyped up" and "inconsistent with the facts."
President Donald Trump has named newly confirmed FBI Director Kash Patel as the acting head of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The move consolidates Patel’s leadership over two major law enforcement agencies during a period of transition.
A Delta Air Lines regional jet flipped upside down upon landing at Toronto Pearson Airport on Monday, injuring 18 people. Officials are investigating whether strong winds and snow played a role in the incident.
Berlin, February 21, 2025 – German citizens will head to the polls on Sunday, February 23, for a snap general election after the coalition government collapsed late last year.
A dialogue between US and Russian delegations has begun in Riyadh, the capital of Saudi Arabia. The Russian Ministry of Foreign Affairs has confirmed the development in an official statement.
Washington, D.C., February 17, 2025 – Elon Musk’s Department of Government Efficiency, also known as DOGE, has reduced the staffing of a key team at the National Highway Traffic Safety Administration (NHTSA) responsible for regulating autonomous vehicles, according to The Washington Post.
Russia has resumed wheat exports to Kazakhstan after lifting a ban that was in place until December 31, 2024.
The European Union will seek more gas from countries including the U.S. to replace Russian supplies, and expand renewable energy faster to cut its overall reliance on the fuel, the EU's energy commissioner has said.
BEIJING, Feb 20, 2025 – China is “doing its best” to push for talks with the European Union over tariffs imposed on Chinese-made electric vehicles, a commerce ministry spokesperson said on Thursday.
Berlin, February 20, 2025 – Mercedes-Benz has launched a fresh cost-cutting initiative aimed at reviving sales and margins, as the German carmaker forecasts a significant drop in earnings in 2025.
Apple has removed its advanced data protection tool for UK users after the government demanded access to encrypted data, raising concerns about user privacy and security.
Sudan is facing a worsening cholera outbreak, with 1,351 cases and 58 deaths reported in White Nile State over three days. Contaminated water, linked to conflict-related infrastructure damage, is fuelling the crisis.
China’s defence ministry dismissed Australia’s complaints over Chinese naval drills between Australia and New Zealand, calling them "hyped up" and "inconsistent with the facts."
President Donald Trump has named newly confirmed FBI Director Kash Patel as the acting head of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The move consolidates Patel’s leadership over two major law enforcement agencies during a period of transition.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment