China's Economy Expands 5% in 2024, Boosted by Exports and Stimulus Measures

China's economy has shown resilience in 2024, with an estimated GDP growth rate of around 5.3 percent, according to a report released by the Center for Forecasting Science at the Chinese Academy of Sciences. This steady growth can be attributed to several factors, including strong exports and effective stimulus measures implemented by the government.



Strong Exports Drive Growth

Exports have been a significant contributor to China's economic growth in 2024. According to the report, exports are estimated to contribute 1.9 percentage points to GDP growth. This positive contribution can be attributed to the continuous improvement in external demand, with exports rising by 6.0 percent year-over-year in Q3 2024.



Stimulus Measures Support Economic Expansion

The Chinese government has introduced a set of policy stimuli in fiscal and financial areas to support the economy. These measures, aimed at stabilizing housing and financial market prices, have helped to boost consumption, investment, real estate, and capital markets. Some of the most effective stimulus measures include:

1. Fiscal Stimulus: The government introduced 3.9 trillion yuan of special-purpose bonds for local governments and issued ultra-long special treasury bonds to boost growth.
2. Policy Support for Specific Fields: The government introduced structural monetary and fiscal tools to offer targeted support for specific fields, such as high-tech, intelligent, and green industries, as well as new infrastructure.
3. Consumption Stimulation: The government launched a year-long program to stimulate consumption, focusing on digital, environmentally-friendly, and health-related consumption.
4. Increased Investment: The government planned to increase effective investment, with 700 billion yuan earmarked in the central government budget for investment in 2024.

Challenges and Uncertainties

While China's economy has shown steady growth in 2024, there are still challenges and uncertainties that need to be addressed. These include insufficiently solid foundation for sustained economic recovery and growth, lack of effective demand, and potential risks in real estate, local government debt, and small and medium-sized financial institutions.

To maintain stable economic growth and cope with external headwinds, the government has emphasized the need to maintain policy focus, work harder, and mobilize the concerted efforts of all sides. A proactive fiscal policy and a prudent monetary policy will continue to be implemented in 2024, along with measures to address both the symptoms and root causes of risks in real estate, local government debt, and small and medium-sized financial institutions.

In conclusion, China's economy has expanded by 5% in 2024, helped by strong exports and effective stimulus measures. While there are still challenges and uncertainties, the government's commitment to maintaining policy focus and addressing risks will be crucial for the country's economic development.