China's economy exceeded expectations in 2024, growing by 5.0%, but faces potential headwinds from US trade tensions and weak domestic demand.
China's economy concluded 2024 on a more positive note than anticipated, buoyed by a series of stimulus initiatives. Nevertheless, the looming threat of a new trade war with the United States and sluggish domestic demand could impede the recovery momentum this year. For the entirety of 2024, the world's second-largest economy expanded by 5.0 percent, aligning with the government's growth target of around 5 percent. This figure surpassed analyst expectations of 4.9 percent growth.
The economy demonstrated robust performance in the fourth quarter, registering a 5.4 percent growth compared to the previous year, significantly outpacing analysts' forecasts and marking its fastest pace since the second quarter of 2023. Analysts polled by Reuters had projected fourth-quarter GDP growth to reach 5.0 percent, accelerating from the third-quarter's 4.6 percent rate. This upward trend was attributed to the implementation of various support measures. On a quarterly basis, GDP grew by 1.6 percent in October-December, matching the anticipated increase and exceeding the revised 1.3 percent gain in the preceding quarter. China's second-largest economy had faced challenges in regaining momentum following a brief post-pandemic surge. A protracted property crisis, mounting local debt, and weak consumer demand exerted considerable pressure on economic activity. Exports, one of the few bright spots, might experience a slowdown as the incoming US President-elect Donald Trump, who has proposed substantial tariffs on Chinese goods, prepares to assume office. Chinese policymakers have pledged further stimulus measures this year, but analysts contend that the scope and magnitude of these efforts will hinge on the speed and intensity of Trump's tariff implementation or other punitive actions. Despite strong exports contributing to the country's record-high trade surplus of $992 billion last year, the yuan currency (CNY=CFXS) has faced selling pressure. A dominant US dollar, declining Chinese bond yields, and the threat of higher trade barriers have pushed the yuan to its lowest point in 16 months. A series of December economic indicators released today suggested that the economy was gaining traction entering the new year, aided by a wave of government support initiatives. Industrial output surged by 6.2 percent year-on-year in December, accelerating from November's 5.4 percent pace and exceeding expectations for a 5.4 percent increase in a Reuters poll. This marked the fastest growth since April last year. Retail sales, a key indicator of consumer spending, climbed by 3.7 percent last month, picking up from November's 3.0 percent rate as consumers began preparations for the upcoming Lunar New Year in January. However, amidst concerns over potential trade disputes with the US and businesses exercising caution in hiring ahead of the festival, the nationwide survey-based jobless rate rose to 5.1 percent in December, compared to November's 5.0 percent.
CHINA ECONOMY GDP GROWTH TRADE WAR DOMESTIC DEMAND STIMULUS MEASURES YUAN CURRENCY
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
FBM KLCI Ends First Trading Day of 2024 on a Weak NoteThe FBM KLCI closed lower for the first trading day of 2024, breaking its six-session winning streak. Market sentiment remained cautious as investors assessed the year ahead.
Read more »
BYD Ends 2024 with Record-Breaking Sales of Over 4 Million UnitsBYD achieved a remarkable milestone in 2024, surpassing the four million unit sales mark for the first time. The Chinese automaker recorded a total of 4,272,145 units sold globally, representing a significant 41.3% increase compared to 2023.
Read more »
Proton Ends 2024 as Malaysia's Second Most Popular Car BrandProton Holdings Berhad (Proton) achieved sales of 152,352 units in 2024, securing its place as the second-best-selling car brand in Malaysia. The company saw a strong finish to the year with 14,601 units sold in December, a 19.7% increase from the previous month. This performance was driven by a surge in exports, with 1,113 units shipped to international markets. Proton's CEO expressed pride in maintaining their position as a leading automotive brand in Malaysia, capturing 18.7% of the market share.
Read more »
FBM KLCI Ends at Lowest Since June 2024 Amid Trump UncertaintyThe FTSE Bursa Malaysia KLCI (FBM KLCI) experienced a brief rebound before closing at its lowest point since June 2024, driven by negative sentiment stemming from investor concerns surrounding the Trump administration's policies. Stocks like Sunway, YTL Power, and CIMB contributed significantly to the index decline.
Read more »
Malaysia's Economy Surges Ahead in 2024 with 5.2% GrowthThe Department of Statistics Malaysia (DOSM) reports that Malaysia's economy has shown strong growth in the first three quarters of 2024, expanding by 5.2% from January to September. This marks a significant improvement from the 3.8% growth recorded during the same period in 2023.
Read more »
Malaysia's Economy Expands 5.2% in First Nine Months of 2024Malaysia's economy continues to show strength in 2024, posting a 5.2% growth from January to September, driven by key sectors such as manufacturing and wholesale & retail trade.
Read more »