On January 17, the National Bureau of Statistics of China revealed preliminary figures indicating that in 2024, the nation's Gross Domestic Product (GDP) surpassed an unprecedented threshold of 130 trillion yuan, reaching approximately 134908.4 billion yuanThis marks a steady growth rate of 5% when calculated at constant prices compared to the previous yearOverall, the economic landscape of China in 2024 is portrayed as stable yet progressive, showcasing solid advancement in high-quality development and laying the groundwork for China’s unique path towards modernization.

This past year, despite navigating through a myriad of internal and external challenges, China’s economy achieved its primary macroeconomic objectivesThe results are commendable, considering the hurdles faced along the wayFollowing the guidelines established at the 18th National Congress of the Communist Party, the nation displayed resilience by facilitating both qualitative improvements and rational growth in economic output during turbulent times.

According to Kang Yi, the director of the National Bureau of Statistics, the achievement of surpassing the 130 trillion yuan mark for GDP is no small feat given the increased external pressures and domestic difficulties

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This milestone not only signifies an enhancement in China's economic prowess and technological capabilities but also illustrates the overall strengthening of the nation's comprehensive national strengthFurthermore, it positions China in a favorable status to bolster global development, pointing towards a future with more robust conditions for growth.

Since the 18th Party Congress, China’s GDP has marked successive milestones every one to two years, exemplifying rapid economic progressionThe economy broke the 100 trillion yuan barrier in 2020, followed by achievements exceeding 110 and 120 trillion yuan in 2021 and 2022, respectivelyOver a decade, the economy advanced from a relatively modest over 50 trillion yuan to more than 130 trillion yuan—a historical leap reflecting significantly enhanced national strength.

The advantages of China’s immense market size and comprehensive industrial framework have been solidified further

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This inherent economic foundation, coupled with the vast scale of its market and complete industrial structure, continues to serve as a critical buffer against risks and challengesIn 2024, retail sales of consumer goods reached 48.8 trillion yuan while fixed asset investments hit 51.4 trillion yuan, showcasing sustained momentum in domestic consumptionNotably, China maintains its leadership in good trade, foreign exchange reserves, and manufacturing scale while also being the second-largest player in service trade and domestic consumption markets.

Furthermore, China's food and energy security have been reinforced, with strategic investments in new infrastructure such as 5G technology, computational capacity, and energy storage continuing to advance rapidlyThis strengthening is critical for ensuring the security of manufacturing supply chains while simultaneously contributing to the overall stability of economic development.

In terms of global engagement, China has been a vital contributor to world prosperity

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Recent statistics indicate that China has contributed approximately 30% to global economic growth, establishing itself as the primary driving force behind worldwide economic expansionThe country is steadfast in its commitment to high-level openness, implementing more policies that promote autonomous and unilateral market openings, and expanding a high-standard free trade zone network across the globeNotably, the scale of goods imports reached 2.6 trillion US dollars in 2024, providing new opportunities for cooperative engagements among nations.

However, Kang Yi also underscores that challenges remainChina is still the world’s largest developing country, with a significant gap in per capita GDP compared to developed nationsIssues concerning inequality and a lack of adequate development persist, indicating that substantial efforts are required to realize the strategic goals envisioned for 2035.

In terms of economic momentum, preliminary data indicates a resurgence towards the end of 2024, with the fourth quarter witnessing a year-on-year GDP increase of 5.4%. This increment reflects a significant acceleration of 0.8 percentage points compared to the previous quarter and suggests that various key indicators—production, demand, pricing, income, and expectations—are all positively trending.

Consumption and investment showed signs of revitalization as well

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In the fourth quarter of 2024, retail sales of consumer goods rose by 3.8%, an increase of 1.1 percentage points from the third quarterGovernment incentives encouraging the replacement of old goods spurred this growth in the consumption of household goods such as home appliances, furniture, and automobilesOn the investment front, infrastructure investment grew by 4.4% with a 0.3 percentage point increase, propelled by high-demand construction projects and significant machinery upgrades.

Industrial production and the services sector also experienced notable reboundsDuring the last quarter, added value in industrial production grew by 5.7%, an improvement of 0.7 percentage points from the third quarter, particularly in the manufacturing sector, where equipment manufacturers saw an 8.1% growthThe services sector also contributed to this recovery, with a year-on-year growth of 5.8%—an acceleration of 1 percentage point.

With the rebound in market demand, prices have begun to stabilize as well

The consumer price index (CPI) excluding food and energy experienced three consecutive months of increases in the fourth quarter, revealing a recovery in consumer sentimentMoreover, industrial product prices began stabilizing as production and sales improved, reflected in shrinking monthly declines in the producer price index (PPI).

Overall, the uptick in economic activities benefitted incomes for businesses, consumers, and the government alikeBy the end of 2024, per capita disposable income for residents had risen by 5.1, marking an increase from the previous quarters and translating into improved financial health for businesses, evidenced further by widening profit margins across major industrial sectors.

The combination of policies has continuously galvanized economic activity: stock market and real estate sectors saw renewed vitality, shipping volumes surged, and money supply increased over the course of 2024, ultimately enhancing the vibrancy of economic development

Notably, in the fourth quarter, the sales area and volume of new residential properties saw positive growth, while the stock exchange in Shanghai and Shenzhen reflected substantial trades and volumes.

Looking forward, considerations regarding external factors suggest that while adverse influences may persist, China's economic foundation remains stableKey strengths—such as substantial market dimensions, robust labor output, and a variety of supporting industries—are set to anchor China's trajectory towards ongoing high-quality developmentKang Yi expresses confidence in the economic outlook for 2025, emphasizing that the dynamics within its huge economy are paired with growing capacities in emerging areas like the digital economy, securing a critical rebalancing of developmental forces.

The Central Economic Work Conference has provided a clear trajectory for the economic landscape in 2025, prioritizing policies aimed at fostering continued growth and enhancing living standards for the population