(Yicai) Jan. 17 -- China’s gross domestic product expanded 5 percent last year, meeting the country’s annual economic growth target, following a burst of growth in the final quarter after the government rolled out the heftiest stimulus package since the Covid-19 pandemic.

GDP stood at CNY134.9 trillion (USD18.77 trillion) in 2024, after expanding 5.3 percent in the first quarter, 4.7 percent in the second, 4.6 percent in the third, and 5.4 percent in the fourth, the National Bureau of Statistics announced today. 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, it said.

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 percent 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 percent, 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 percent. In the last quarter, the value-added output of industrial enterprises above a designated size -- those with annual revenue of at least CNY20 million (USD2.7 million) -- climbed 5.7 percent.

Retail sales of consumer goods rose 3.5 percent to CNY48.79 trillion (USD6.79 trillion), propelled by a 3.8 percent jump in the final three months. Sales of services jumped 6.2 percent.

Last month, there was a marginal improvement in China’s consumer services sector, said Wen Bin, chief economist at China Minsheng Bank. While the business activity index for wholesale, catering, accommodation and other sectors remains below the boom-bust line, it increased by 2.3 percentage points, 1.6 point and 4.3 points respectively compared with November.

Wen also highlighted strong automobile sales growth driven by the government’s old-for-new trade-in policy. In addition, sales by the top 100 property developers surged almost 29 percent in December from November, contributing to housing-related consumption growth.

Last year’s fixed asset investment rose 3.2 percent overall to CNY51.4 trillion (USD7.15 trillion), with infrastructure climbing 4.4 percent, manufacturing jumping 9.2 percent, but real estate slumping 10.6 percent.

Manufacturing investment contributed more than two-thirds to social fixed asset investment and was its main driving force, Lian Ping, dean of the research institute set up by the Guangzhou Development District Holding Group and the China Chief Economist Forum, told Yicai.

Editor: Kim Taylor