China
Sustainable Growth, Technological Advancements, and Realities Facing China’s Economy
In 2024, China’s economy grew by about 5%, driven by tech advancements and green energy investment, despite real estate sector declines. High-tech industries and strong domestic demand fostered growth amidst looming challenges.
Economic Growth and Challenges in China
In 2024, China’s economy experienced notable growth and advancements in technology, with significant investments in green energy. Despite a downturn in the real estate sector, robust internal and external demand contributed to economic expansion, particularly in high-tech industries and exports. However, upcoming challenges, including the ongoing contraction in real estate and potential tariffs from a reelected Trump administration, cast a shadow on prospects for 2025.
China’s real GDP grew by 4.8% in the first three quarters, culminating in around 5% growth for the year. The government’s policy direction for 2025 is yet to be determined, raising questions about the effectiveness of strategies to address both internal and external economic pressures.
The industrial landscape is shifting, with explosion in the production of electric vehicles, solar panels, and lithium-ion batteries. This "new trio" accounted for an increasing share of GDP and is expected to drive further economic growth. Additionally, China’s green energy transition is progressing rapidly, exceeding targets for wind and solar capacity, which could trigger a significant reduction in CO2 emissions and bolster the green economy’s contribution to GDP growth.
Source : Green growth, high-tech gains and hard truths for China’s economy
