JAKARTA – The National Bureau of Statistics (NBS) of China announced a 5.4% year-on-year (YoY) growth in Gross Domestic Product (GDP) for the fourth quarter (Q4) of 2024, exceeding the consensus forecast of 5%.

For the full year (FY) 2024, the growth reached 5%, in line with the government’s target. This growth also exceeded the expectations of several analysts, who had anticipated it to be at 4.9%.

Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, noted that the growth was supported by several policy changes by the Chinese government since September 2024. These changes were seen as helpful in stabilizing the economy during Q4.

“However, these changes require substantial policy stimulus to drive momentum and sustain economic recovery,” Zhang said, quoted by CNBC.

Despite this, some analysts also pointed out the possibility that China’s economic recovery may not be as strong as the reported figures suggest. Deflation has persisted in China for seven consecutive quarters.

“We’re not betting against policymakers’ ability to generate 5% GDP growth in 2025. But the question is whether they can achieve higher inflation,” said Larry Hu, Chief Economist for China at the financial firm Macquarie. (KR/ZH)