The economy of China has managed to achieve its growth target for 2024 successfully, even after facing a challenging domestic environment. As per Kavan Choksi, China’s growth was an encouraging news for both domestic consumption and the global economy. After all, the second-largest economy in the world is an important driver of global growth. It contributes to around 30%to overall global economic growth.
Kavan Choksi sheds light on the growth in China’s economy in 2024
As per the National Bureau of Statistics, China’s economy grew by 5% year-on-year in the year of 2024. The country’s GDP reached about 134.91 trillion yuan ($18.77 trillion). These economic achievements help provide a solid foundation for realizing the goals outlined in the 14th Five-Year Plan of China. A considerable acceleration was seen in the fourth quarter of 2024 by the domestic economy in China. It grew by 5.4% year-on-year, marking an increase from the 4.6 % in the previous quarter. This boost took place despite the many challenges faced by the country.
An annual growth of 5.8 % in 2024 was seen in industrial production in China, up from the 4.6% growth in 2023. Considerable progress has been seen in China over 2024, especially in regards to the pursuit of high-quality development. The country took steps for increasing train travel, expanding electric vehicle production, boosting foreign trade, as well as achieving record grain harvests.
Achievements in foreign trade were especially noteworthy. China reported an unprecedented trade surplus of nearly $1 trillion in 2024. As per the General Administration of Customs, exports reached $3.58 trillion. On the other hand, imports totaled to about $2.59 trillion. This resulted in a surplus of $990 billion. China produces around one-third of the manufactured goods in the world, more than the combined output of major countries like the United Kingdom, United States, Japan, Germany, and the Republic of Korea. As Kavan Choksi mentions, its output in December 2024 was especially impressive, as China managed to achieve a record monthly surplus of $104.8 billion. Export success in China is driven by many factors, including considerable investments in education, manufacturing and infrastructure. Universities in China produce a huge number of engineers every year.
One of the key features of the Chinese governance model is its impressive speed in both responding and adapting to the evolving economic landscape. Subsequent to negative economic news around the middle of 2024, China’s government promptly introduced a series of economic stimulus measures. These measures included cuts to loan interest rates and bank reserve ratios, along with a substantial fiscal package of 10 trillion yuan for addressing local government debt issues. There was strong support from the Chinese public for the government’s initiative to boost household consumption. This backing had a pivotal role in ensuring the success of the initiative.
The government in China also took measures for creating a more favourable business environment for its the private sector. They particularly intensified efforts to combat “remote fishing”, as well as relaxed restrictions on foreign investment. The real estate sector in the country has additionally experienced the required positive adjustments aimed at stabilizing the market and overcoming the downturn.
