2024 China Economic Review: GDP, Trade, and Foreign Direct Investment Analysis

In 2024, China’s economy grew 5%, supported by stimulus measures, strong exports, and high-tech investments, despite weak domestic demand and demographic challenges. Key sectors like manufacturing and digital economy thrived, necessitating structural reforms for sustained growth into 2025.

China’s economy grew 5% in 2024, driven by stimulus measures, strong exports, and high-tech investment, despite challenges like weak domestic demand and demographic pressures. Structural reforms and targeted policies are essential for sustaining growth into 2025.

China’s economic performance in 2024 saw a return to steady growth, achieving a 5 percent GDP expansion in line with the government’s target, as per the official data released by the National Bureau of Statistics (NBS) on January 17, 2025. This outcome was largely bolstered by stimulus measures that helped drive a stronger-than-expected fourth-quarter recovery. While the country’s economy faced challenges such as declining population numbers and sluggish consumer demand, there were signs of optimism across key sectors, including industrial output and digital economy growth.  

Additionally, China is beginning to pivot away from its dependence on the property sector, with the digital economy playing an increasingly significant role in economic expansion.  

This article explores the major economic highlights from 2024 and examines the key trends, challenges, and opportunities that will shape China’s economy in the year ahead. 

In 2024, China’s GDP reached RMB 134.91 trillion (US$18.80 trillion), maintaining its position as the second-largest economy in the world, behind only the United States, whose projected GDP for 2024 stands at approximately US$29 trillion. This reflects a year-on-year growth of 5.0 percent, in line with the government’s official target of “around 5 percent“ set during the 2024 Two Sessions. While slower than the 5.2 percent growth achieved in 2023, it highlights a stable recovery largely driven by strong export performance and targeted stimulus measures throughout the year. 

The economy saw accelerated growth in the final quarter of 2024, with GDP expanding by 5.4 percent, surpassing expectations and making a substantial contribution to the overall 5.0 percent increase. Indeed, quarterly growth performance in 2024 showed steady improvement: the first quarter recorded a 5.3 percent increase, followed by 4.7 percent in Q2, and 4.6 percent in Q3.  

Sectoral performance highlights revealed the manufacturing and service sectors as key drivers.  

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