China’s economy grows 5% in 2024

China’s economy grew 5 per cent last year, meeting the government’s official target as strong exports and a concerted stimulus effort mostly offset weak domestic demand.

The result was slightly better than analysts’ forecasts in a Reuters poll but weaker than growth in 2023, when the economy expanded 5.2 per cent.GDP rose 5.4 per cent year on year in the fourth quarter, as a government stimulus that kicked off in September gained some momentum.

Analysts expect Beijing to set its growth target for 2025 at about 5 per cent for the third year in a row, though trade is expected to face headwinds with threatened tariffs by incoming US president Donald Trump. China’s currency, equities and bond yields edged up following better than expected GDP data.

The onshore renminbi strengthened slightly to Rmb7.327 a dollar, while the offshore currency, which trades freely, rose 0.1 per cent to Rmb7.342. Mainland China’s CSI 300 stock index advanced 0.5 per cent.

The 10-year sovereign bond yield rose 0.001 percentage points to 1.646 per cent, and the rate-sensitive two-year yield rose 0.02 percentage points to 1.269 per cent, implying a slight flattening of the yield curve. (www.ft.com)

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