China's economy met the 5% growth target for 2024, but many feel a slowdown, as industrial gains overshadow weak consumer demand. Rising unemployment and deflationary pressures highlight deeper structural challenges, leaving skepticism over the accuracy of official data and future growth.
While China met its official 2024 growth target of 5%, many citizens are feeling the strain of a lopsided recovery. Economic gains have been concentrated in industry and exports, leaving domestic consumption weak and living standards worsening for many.
Despite achieving the target, concerns are growing that structural issues in China’s economy could worsen in 2025, particularly if the government continues to rely on debt to drive growth. Beijing’s strategy includes counteracting potential U.S. tariff hikes, which could be implemented as soon as the inauguration of President Donald Trump next week.
Industrial output outpaced retail sales, and unemployment continued to rise, signaling the challenges of a supply-driven economy running a large trade surplus but facing internal weaknesses. While factory deflation makes Chinese exports more competitive, it also deepens internal deflationary pressures and leads to shrinking corporate profits and stagnant wages.
Andrew Wang, an executive in the industrial automation sector, said his revenue fell 16% last year, prompting job cuts. He noted that for many businesses, “We need to run faster just to stay where we are.”
Despite the government's push for domestic consumption, with policies like a subsidized trade-in program for cars and appliances, many in China feel the economic gains aren’t reaching them. For example, Jiaqi Zhang, a 25-year-old investment banker in Beijing, saw her salary decrease by 30% over two years, leaving her with a general sense of unease about her future.
China's official data claims a 5.4% growth rate in the fourth quarter of 2024, a jump from earlier in the year. However, some analysts believe this growth was boosted by front-loaded exports to the U.S., ahead of any potential tariff hikes. Frederic Neumann, chief Asia economist at HSBC, warned that a greater domestic stimulus will be needed in 2025 to sustain the economy.
Though China met its target, skepticism is rising about the accuracy of the data. There is growing concern that domestic demand remains weak, which could continue to strain China’s economy and contribute to broader global trade tensions.
As for the future, economists are divided, with some predicting slower growth in 2025. Alicia Garcia-Herrero of Natixis stated that investors are unlikely to be swayed by the 5% growth target, pointing out that it’s becoming less relevant given the underlying economic challenges.
Additionally, widespread skepticism about the reliability of official data continues to grow, especially after recent commentary on GDP estimates suggested growth may have been overstated in past years.
Despite these concerns, China is expected to continue implementing stimulus measures to address its structural economic issues and maintain growth in the coming year.
China has issued a formal protest against the United States over recent remarks by Defence Secretary Pete Hegseth, accusing Washington of “vilifying” Beijing and promoting confrontation in the Indo-Pacific.
A Chinese military official on Saturday rejected U.S. allegations about Beijing’s regional behavior, accusing Washington of destabilizing the Asia-Pacific region.
U.S. Defense Secretary Pete Hegseth told Indo-Pacific allies Saturday they won’t be left alone against growing military and economic pressure from China—but they must also boost their own defense efforts.
China has strongly criticised French President Emmanuel Macron's remarks linking Ukraine and Taiwan, calling them a “double standard” and insisting the two issues are not comparable.
As global tensions rise, Kazakhstan's leadership navigates a delicate geopolitical balance between Russia, China, and the West, aiming to turn its strategic location into a platform for cooperation, reform, and innovation.
Flash floods in central Nigeria have killed at least 151 people, with authorities warning the toll may rise further as search and rescue operations continue in the flood-ravaged town of Mokwa, Niger State.
A celebration of Turkish cuisine and friendship took place in Karachi on Sunday as the Turkish Consulate hosted a World Breakfast Day event, sharing traditional flavours with a distinguished Pakistani audience.
More than 500 people were arrested and two fatalities reported following chaotic celebrations across France after Paris Saint-Germain's historic Champions League victory, according to the interior ministry.
Wildfires in western and central Canada have triggered the evacuation of more than 26,000 people, with provinces including Manitoba, Saskatchewan and Alberta facing major threats.
Indonesian rescuers are continuing their efforts to locate eight people still missing after a quarry collapse in West Java left at least 17 dead and six injured, with authorities warning of ongoing landslide risks.
On May 28, the inauguration ceremony of Lachin International Airport was held.
Taxi drivers across France are protesting government plans to cut payments for driving patients to medical appointments. These cuts are part of a broader effort by Prime Minister François Bayrou to save €40 billion in the 2026 budget and reduce the country’s large deficit.
A car drove into crowds of Liverpool fans celebrating the club’s Premier League title in the city centre on Monday evening, injuring dozens including 4 children. A 53-year-old man believed to be the driver was arrested at the scene.
EU ministers have greenlit a massive €150 billion defense investment fund—dubbed the Security Action for Europe (SAFE)—as the bloc ramps up its military readiness in response to Russia’s aggression and growing uncertainty over U.S. security guarantees.
Brazil’s economy is expected to have regained momentum in the first quarter of 2025, driven by a surge in household spending and private investment, according to a Reuters poll of economists conducted from May 21–26.
Indonesian rescuers are continuing their efforts to locate eight people still missing after a quarry collapse in West Java left at least 17 dead and six injured, with authorities warning of ongoing landslide risks.
Iran’s Foreign Minister Abbas Araqchi spoke by phone with IAEA Director Rafael Mariano Grossi, warning that any political actions against Iran at next week’s Board of Governors meeting would have consequences.
Iran said on Saturday that it has officially received a new nuclear deal proposal from U.S. President Donald Trump, delivered by Oman during a diplomatic visit to Tehran.
Hamas said on Saturday it had officially responded to a ceasefire plan put forward by U.S. envoy Steve Witkoff, who represents President Donald Trump in Middle East diplomacy. The group said its reply includes a key demand: a complete end to the war.
Saudi Arabia and Qatar will provide joint financial support for Syrian state employees, Saudi Foreign Minister Prince Faisal bin Farhan announced during a visit to Damascus, as regional efforts to support Syria’s reconstruction gain momentum.
Flash floods in central Nigeria have killed at least 151 people, with authorities warning the toll may rise further as search and rescue operations continue in the flood-ravaged town of Mokwa, Niger State.
A celebration of Turkish cuisine and friendship took place in Karachi on Sunday as the Turkish Consulate hosted a World Breakfast Day event, sharing traditional flavours with a distinguished Pakistani audience.
More than 500 people were arrested and two fatalities reported following chaotic celebrations across France after Paris Saint-Germain's historic Champions League victory, according to the interior ministry.
Wildfires in western and central Canada have triggered the evacuation of more than 26,000 people, with provinces including Manitoba, Saskatchewan and Alberta facing major threats.
Indonesian rescuers are continuing their efforts to locate eight people still missing after a quarry collapse in West Java left at least 17 dead and six injured, with authorities warning of ongoing landslide risks.
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