Bracing for the China transition

THE Chinese economy re-accelerated to 5.4% year-on-year (y-o-y) in 4Q24, up from 4.6% y-o-y in 3Q. Breaking down the data, retail sales growth and industrial production growth improved to 3.8% y-o-y and 5.7% y-o-y, respectively, compared to 2.7% y-o-y and 5% y-o-y in the previous quarter.

Overall, the economy demonstrated a robust V-shaped recovery in the final quarter of the year, reflecting the effectiveness of stimulus measures introduced in late September. As a result, the Chinese economy grew by 5% in 2024, achieving its growth target of around 5%.