China's Economy Grows 5% in 2024, Slowest Pace Since 1990
China's economy achieved a growth rate of 5% in 2024, meeting government targets but marking the slowest growth outside of the Covid pandemic since 1990, according to the National Bureau of Statistics. The economy showed signs of recovery in the latter half of the year, spurred by government stimulus measures, including interest rate cuts and tax incentives for property purchases.
The growth rate improved in the final quarter, reaching 5.4%, compared to 4.6% in the previous quarter. However, the overall performance was tempered by challenging internal and external conditions. Despite a 5.8% increase in industrial output, retail sales only rose by 3.5%, reflecting ongoing weaknesses in consumer confidence amid a property market downturn and lingering effects from the pandemic.
Experts emphasize the need for renewed consumer confidence for a sustainable recovery. Some analysts also express skepticism about the reliability of China's economic data, citing the political motivations behind its reporting. As uncertainty looms, particularly with the incoming US administration signaling potential tariffs on Chinese goods, the prospects for sustained growth remain in question.
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