China's economy reached its 2024 growth target despite a complex domestic and global landscape, providing much-needed certainty and confidence to the global economy.

The world's second-largest economy expanded 5 percent year on year in 2024, with its gross domestic product (GDP) reaching 134.9084 trillion yuan (about 18.77 trillion U.S. dollars), the National Bureau of Statistics (NBS) said Friday.

Kang Yi, head of the NBS, described the economic achievements as "hard-won," and said they would provide a solid foundation for achieving goals outlined in the country's 14th Five-Year Plan (2021-2025).

China's growth rate is among the highest of the world's major economies, reinforcing its continued role as a key driver of global economic growth, Kang told a press conference.

Staff members debug a digital plate-cutting machine at a pipeline workshop of an intelligent manufacturing base under China Offshore Oil Engineering Company in north China's Tianjin, Oct. 30, 2024. [Photo/Xinhua]

Economic rebound

In the fourth quarter of 2024, the economy expanded 5.4 percent year on year, faster than the growth rate of 4.6 percent recorded in the previous quarter, according to the NBS.

On a quarterly basis, China's GDP grew by 1.6 percent in October-December 2024, reflecting an acceleration from the 0.9 percent increase in the third quarter.

The acceleration came despite various challenges. Domestically, consumer spending growth remained modest, many enterprises faced operational difficulties, employment pressure persisted, and risks in certain sectors continued to pose concerns. Globally, geopolitical conflicts and rising protectionism added to the complexities already confronting China's economy.

Value-added industrial output went up 5.8 percent year on year in 2024, accelerating from 4.6 percent growth achieved in 2023. Retail sales, a main gauge of consumption, gained 3.5 percent year on year, while fixed-asset investment expanded 3.2 percent, according to the NBS.

During the past year, China has made significant strides in its pursuit of high-quality development, achieving record highs in grain output, new energy vehicle production, railway trips, and foreign trade volume, among other key indicators.

Its policy push to foster new quality productive forces has accelerated the upgrading of traditional industries, the development of emerging sectors, the planning of future industries, and the building of a modern industrial system.

The Global Innovation Index 2024, released by the World Intellectual Property Organization, ranks China 11th among the world's most innovative economies, up one spot from the previous year.

Customers apply for subsidies under the trade-in program for consumer goods in Hangzhou City, east China's Zhejiang Province, Oct. 31, 2024. [Photo/Xinhua]

Policy boosts

Since September, China has unveiled a series of measures to boost the economy. These include cuts in the market-based benchmark lending rates and banks' reserve requirement ratios, and a package of 10 trillion yuan in new fiscal funding to address local government debt risks. A trade-in program for consumer goods such as appliances and automobiles was expanded to revive consumption.

Authorities have taken steps to create a more favorable business environment for all entities. Efforts to combat cross-region, profit-driven law enforcement -- referred to as "distant fishing," which typically targets private entrepreneurs beyond local jurisdictions -- have intensified, while restrictions on foreign investment have been further relaxed.

In the real estate sector, adjustments have also been made to home purchase mortgage rates, transaction taxes and downpayment ratios in order to stabilize the market and reverse a downturn.

These policies have played a "decisive role" in boosting economic rebound in the fourth quarter and achieving the full-year target, Kang said.

He noted that, despite its large GDP, China remains a developing country, with a big gap in per-capita GDP compared to developed nations. He cautioned that imbalances and inadequacies in development remain prominent, and substantial efforts are still required to achieve the long-term objectives set for 2035.

Looking ahead, China plans a stronger macroeconomic policy push for 2025. Authorities have pledged to adopt a more proactive fiscal policy and a moderately loose monetary policy, strengthen unconventional counter-cyclical adjustments, and expand domestic demand across all sectors.

As part of the policy push, the country will significantly increase the size of its fiscal deficit in 2025, and allocate a larger scale of government bonds, including ultra-long special treasury bonds and local government special bonds, according to Vice Minister of Finance Liao Min.

Final details, including this year's GDP growth target, deficit-to-GDP ratio and other arrangements, will be available during this year's annual sessions of China's top legislature and political advisory body in March.

A drone photo taken on Aug. 22, 2024 shows a view of the container terminal of Rizhao Port in east China's Shandong Province. [Photo/Xinhua]

Robust engine

Contributing around 30 percent to global economic growth annually in recent years, China has been the largest engine driving the world economy, Kang noted.

As the world's second-largest importer and a major trading partner of more than 150 countries and regions, China's unwavering commitment to opening up and sharing development benefits with others has created new opportunities for the growth of other countries, according to analysts.

For seven consecutive years, China has hosted the China International Import Expo, inviting businesses from around the globe to explore the vast potential of its consumer market. Having fully opened its manufacturing sector to foreign investors, China is committed to further opening up sectors such as telecommunications, education, medical services, and more.

The steady growth of China's economy and the continuous expansion of high-standard opening up are the greatest sources of confidence for foreign investors to increase their stake in China, Chinese Foreign Ministry spokesperson Guo Jiakun told a press conference last week.

In December, the World Bank raised its forecast for China's economic growth in 2025, citing "higher-than-expected fiscal spending and more decisive policy actions to stabilize the property sector, following recent guidance from policymakers," which could push growth above baseline expectations.

Noting that China's current potential economic growth rate remains at a medium to high level, Kang expressed confidence in the country's economic development prospects for 2025, despite the potential for worsening adverse effects stemming from changes in the external environment.

"China's extensive experience in macro control, along with the willingness of our enterprises to pioneer and the hardworking nature and wisdom of our people, have together strengthened our confidence in promoting high-quality development and addressing risks and challenges," he said.