Xi Jinping Confirms China’s Economy on Track for 5% Growth in 2024

China’s President Xi Jinping has reassured global markets, announcing that the nation’s economy is expected to grow around 5% in 2024, aligning with its official target. This announcement comes amidst a year marked by economic uncertainty, weak domestic demand, and a sluggish property market​.

Stability Amid Uncertainty
Xi emphasized that China’s economy has remained “overall stable,” with employment and prices holding steady. The government has addressed risks in key areas while gradually rolling out stimulus measures since September. Economists currently forecast a growth rate of 4.8% for 2024, with similar expectations for 2025​.

Continued Economic Support
During a New Year’s Eve address, Xi signaled plans for proactive macroeconomic policies to sustain growth in 2025. This includes potential public borrowing, increased government spending, and further monetary easing by the People’s Bank of China (PBOC). Analysts predict the central bank could lower reserve requirement ratios (RRR) to inject liquidity into markets​.

External and Domestic Headwinds
China’s growth faces challenges, including weak export demand and a persisting deflationary trend. The property market also continues to weigh on economic recovery. Adding to the complexity, the return of Donald Trump to the U.S. presidency raises concerns over potential increases in tariffs on Chinese goods​.

What Lies Ahead
​Despite structural challenges, Beijing’s policymakers remain committed to navigating short-term hurdles while steering toward long-term stability. As the official GDP figure is set to be released in March, all eyes will be on how effectively China balances stimulus measures with financial risks in 2025.