Key Points China’s economy expanded by 5.4% in the fourth quarter, exceeding the market’s expectation, as a flurry of stimulus measures powered the economy to meet Beijing’s growth target. That last-quarter sprint helped lift China’s full-year GDP growth to 5.0% in 2024, in line with the official target of “around 5%.” In December, retail sales jumped 3.7% from a year earlier, exceeding Reuters’ forecast of 3.5%. Industrial output expanded 6.2% from a year earlier, versus expectations of 5.4%. China’s economic activity accelerated more than expected in the final three months of 2024 as stimulus measures kicked in, allowing Beijing to meet its annual growth target. China’s gross domestic product expanded by 5.4% in the fourth quarter, beating Reuters-polled economists’ estimates of a 5.0% growth, and outpacing the 4.6% in the third quarter, 4.7% in the second quarter, 5.3% in the first quarter In December, retail sales jumped 3.7% from a year earlier, exceeding Reuters’ forecast of 3.5%. Industrial output expanded 6.2% from a year earlier, versus expectations of 5.4%, underscoring China’s imbalance between domestic production and weak demand. The full-year fixed asset investment rose 3.2% in 2024, shy of the projected 3.3% increase in a Reuters poll, as real estate investment drag steepened to a 10.6% drop, compared with the January to November period. The urban unemployment rate ticked higher to 5.1% in December from 5.0% in the prior month. Disposable income for urban residents grew by 4.4%, slower than the overall economic growth, while that of rural residents increased by 6.3% in 2024. Growth, demographic concerns Statistics bureau spokesperson Fu Linghui told reporters Friday that consumers’ ability to spend was still weak, while noting that in 2025 “unfavorable impact of external factors may deepen,” according to CNBC’s translation of his remarks in Mandarin. He reiterated Beijing’s priority this year was to boost consumption, and CPI could “moderately rise” in 2025. China’s consumer inflation has remained barely above zero, while wholesale prices fell for a 27th consecutive month in December, discount. “They are betting on a substantial infusion of policy stimulus and reforms to turbo boost the country’s economy in 2025, invigorating domestic demand and warding off disinflationary loom,” said Bruce Pang, distinguished senior research fellow at the National Institution for Finance and Development. Top leaders have pledged “proactive” fiscal measures and a “moderately loose” monetary policy stance for the current year. Some analysts expect stimulus might start to take effect this year, but it will take longer to see a significant impact. The government is expected to reveal the official growth targets for 2025 and additional stimulus measures at the annual parliamentary meetings in March. Economists expect Beijing to keep its GDP growth target for 2025 at around 5%, if not slightly lower.