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Analysts say they see signs of malaise in China’s domestic economy, but those problems were offset mainly by robust exports and a $1 trillion trade surplus.
Jan. 16, 2025Updated 9:18 p.m. ET
The economic scars of China’s real estate crash are evident at the country’s many street markets for construction materials. Proprietors of once-bustling shops that sell everything from lighting fixtures and doors to toilet bowls are aching for customers.
At the same time, China’s exports have climbed sharply. Companies are shipping cars, smartphones and many other products to foreign markets that they can no longer sell at home. Private-sector companies are investing heavily in new factories and equipment to expand production for export.
On Friday, the National Bureau of Statistics said that China’s economy grew 5 percent last year, as surging exports and strong investment in factories and industrial equipment mostly offset a lingering slump in construction.
The government had set a target of “about 5 percent” nearly a year ago. The 2024 number was only slightly slower than China’s growth rate of 5.2 percent in 2023, when the country was rebounding after nearly three years of municipal lockdowns, mass quarantines and other stringent pandemic measures.
The economy grew more strongly from October through December than during any other quarter in the year. Lifted by strong car sales, the Chinese economy expanded late last year at a pace that, if extended for a full year, would represent a growth rate of 6.6 percent.
While the official figures often draw skepticism, government economists insist that the economy has regained its footing. “China’s economy is really recovering amid the ups and downs,” said Yang Ping, a director of economic research at the National Development and Reform Commission, China’s main economic planning agency.
