Xi says China on track to achieve 5% GDP full-year growth in 2024
President Xi Jinping announced on Tuesday that China’s economy is set to achieve its target of around 5 per cent GDP growth for 2024, signaling that the world’s second-largest economy is progressing toward its official goal.
In a New Year’s address, Xi described China’s economy as “overall stable and progressing amid stability,” emphasising that risks in key sectors have been effectively managed. Employment and prices have remained steady, bolstering confidence as the country enters the new year.
While the final growth figure will be revealed next month, Xi’s remarks capped a year of economic uncertainty, following a period when China’s growth target was viewed as ambitious amid global challenges. However, following a series of stimulus measures introduced since late September, economists have raised their forecasts, now predicting a 4.8 per cent expansion for 2024.
Looking ahead to 2025, Xi reiterated China’s commitment to implementing more proactive macroeconomic policies. He assured the nation that the government will continue to support economic growth, noting that the country will complete its 14th Five-Year Plan and push forward with effective economic policies.
Addressing concerns about external uncertainties and shifting growth drivers, Xi urged confidence in overcoming challenges. He also reaffirmed China’s resolve to unite Taiwan, asserting that “no one can ever stop China’s reunification.”
As China aims for another 5 per cent growth target in 2025, top leaders have signaled readiness to implement further stimulus measures, including public borrowing, spending, and monetary easing. However, with weak domestic demand and an uncertain global outlook, particularly for exports, analysts expect further challenges ahead.
In response to potential external headwinds, the People’s Bank of China (PBC) is poised to make further monetary adjustments, including possible cuts to the required reserve ratio (RRR) in early 2025, to support liquidity and stabilize the yuan amid global uncertainties.
