CHINA’S gross domestic product (GDP) expanded 5% last year, meeting the country’s annual economic growth target, following a burst of growth in the final quarter after the government rolled out a hefty stimulus package.

GDP stood at 134.9 trillion yuan (US$18.77 trillion) in 2024, after expanding 5.3% in the first quarter, 4.7% in the second, 4.6% in the third, and 5.4% in the fourth, the National Bureau of Statistics announced Friday. Fourth-quarter growth was the strongest in a year and a half.

Although the external environment is still complex and uncertain, the effects of the economic stimulus package rolled out since September are materializing, Peking University said in a recent report. Consumer demand expanded in the last quarter, with a notable uptick in big-ticket purchases, particularly home appliances.

To steady the economy and bolster investor confidence, the government has introduced wide-ranging measures, including targeted monetary easing and incentives to boost consumption. Stepped-up production ahead of the end of 2024 and before this month’s lunar new year holiday are expected to go on supporting growth, and a new round of stimulus is likely this year, according to analysts.

The economy should grow by about 5% in 2025, per a report by the Bank of China Research Institute. GDP will continue to maintain a medium-to-high growth track and actual growth should reach around 4.7%, said Wang Qing, chief macro analyst at Golden Credit Rating International. The government has yet to set this year’s annual growth target.

Last year, industrial and consumption growth accelerated. Value-added industrial output, an important economic indicator, jumped 5.8%. In the last quarter, the value-added output of industrial enterprises above a designated size — those with annual revenue of at least 20 million yuan — climbed 5.7%.

Retail sales of consumer goods rose 3.5% to 48.79 trillion yuan, propelled by a 3.8% jump in the final three months. Sales of services jumped 6.2%.

Last year’s fixed asset investment rose 3.2% overall to 51.4 trillion yuan, with infrastructure climbing 4.4%, manufacturing jumping 9.2%, but real estate slumping 10.6%. (SD-Agencies)