Kathy
Jan 17, Friday 2025, Beijing: China’s economy expanded more than expected in the final quarter of 2024. According to official data out on Friday.
However, the country is faced with a big test due to the likely imposition of higher tariffs by US President-elect Donald Trump, who is set to take office soon. Trump has threatened to raise tariffs on Chinese imports by up to 60%, which will severely impact China’s export-driven growth.
Despite the economic growth, China’s real estate sector still struggles, contributing to a broader economic slowdown. The property market has shrunk by 10% in 2022 and likely by 9.6% in 2023, leading to a significant drag on GDP growth. The government implementing various easing measures to stabilize home prices in some large cities, but a nationwide recovery seems unlikely in the near term.
China has indicated that the negative effects brought by US tariffs can be outweighed by how it will also strengthen its own economic support policies. The communist party concluded, on its concluding day of Central Economic Work Conference, to ensure the enrichment of policy tool as well as fine-tune while also reducing more risks to an economy. An analyst said much of this just recaps plans already in progress and not specifically new initiatives.
China’s economic prospects for 2025 are uncertain, but Goldman Sachs has a projected GDP growth of 4.5%, which seems in line with consensus expectations, though there is a wide range of possible outcomes and a significant downside from the US administration in the form of higher-than-expected tariffs. Keep Reading Questiqa.com and questiqa.in for more updates.
Stacy
Olivia
