China’s real GDP growth stood at 5 per cent in 2024, lower than the 5.4 per cent growth in 2023. Real estate fixed asset investment also fell by around 11 per cent, contracting for the third consecutive year. Weak consumption is also keeping inflationary pressures muted, with consumer price inflation averaging just 0.3 per cent over the past year and producer prices contracting for over two years. The ability of these monetary and fiscal measures to meaningfully revive growth is yet to be seen, according to the report by CareEdge Rating. To achieve more sustainable consumption-driven growth, China may need to focus on improving its employment situation and strengthening its social safety net, said the report. The report added that uncertainty remains high, and it will be important to track how tariff-related developments unfold. The additional tariff could reduce China’s real GDP Growth by around 0.25pp in 2025, especially if domestic demand also remains weak, the report said. It added that the current consumer goods trade-in programme may not be sufficient to drive long-term consumption growth. For confidential support call the Samaritans on 08457 90 90 90 or visit a local Samaritans branch, see www.samaritans.org for details. In the U.S. call the National Suicide Prevention Line on 1-800-273-8255.
