China's Economy Grows 5.4% in Q4 2024

China's economy demonstrated a stronger-than-expected recovery in the fourth quarter of 2024, growing 5.4% year-on-year, surpassing analysts' forecasts and the government's target of around 5%. This growth was attributed to a series of stimulus measures, including a significant fiscal package aimed at boosting domestic demand amid external pressures, particularly the looming threat of a trade war with the United States. Despite this positive performance, challenges such as weak domestic consumption and a significant downturn in the real estate sector, which saw a 10.6% investment decline, continue to pose risks to sustained economic stability. The full-year GDP growth for 2024 was 5%, slightly exceeding initial estimates. Key indicators showed resilience, with industrial production and retail sales increasing by 6.2% and 3.7%, respectively, in December. However, economists warn that potential U.S. tariffs could further strain China's economic recovery, necessitating ongoing domestic stimulus efforts.