China’s gross domestic product (GDP) is expected to pass $18.08 trillion (RMB 130 trillion) in 2024, Chinese President Xi Jinping said on Tuesday during his New Year message for 2025, according to state news agency Xinhua.
President’s statement
The President said that the Chinese economy has rebounded and is on an upward trajectory, adding that the grain output has surpassed 700 million tons.
Xi added that the country has proactively responded to the impacts of the changing environment at home and abroad and has adopted a full range of policies to make solid gains in pursuing high-quality development in the past year.
The Chinese President also said that China has fostered new quality productive forces and that new business sectors, forms, and models have kept emerging. He noted that for the first time, China has produced more than 10 million new energy vehicles in a year, and breakthroughs have been made in fields including integrated circuits, artificial intelligence (AI), and quantum communications.
The President also highlighted government measures introduced to improve people’s livelihoods, including raising the basic pension, lowering mortgage rates, and expanding a scheme for cross-province direct settlement of medical bills.
“We should work together to steadily improve social undertakings and governance, build a harmonious and inclusive atmosphere, and settle real issues, big or small, for our people. We must bring more smiles to our people and greater warmth to their hearts,” stated Xi.
Xi also said that in 2025, the country will implement more proactive and effective policies, prioritize high-quality development, promote greater self-reliance and strength in science and technology, and maintain sound momentum in economic and social development.
Chinese economy
Last week, the World Bank raised its forecast for China’s economic growth marginally by 0.1 percentage points to 4.9% for 2024, citing the country’s recent policy easing and near-term export strength.
China’s real GDP growth for 2025 is expected at 4.5%, higher than the multilateral lending agency’s earlier forecast of 4.1%.
The World Bank said that despite multiple challenges, China’s economic growth has remained robust at 4.8% in the first three quarters of the year. However, it highlighted that growth has moderated since the second quarter of 2024, weighed down by subdued domestic demand and a prolonged downturn in the property sector.
The World Banks also said that the Chinese government has provided policy stimulus aimed at balancing short-term support for domestic demand with longer-term financial stability objectives.
Earlier in December, the world’s second-biggest economy said it is committed to raising its fiscal spending and government bond issuances in 2025 in a bid to revive its faltering economy by enhancing consumption and improving domestic demand.
In recent months, China introduced several stimulus measures to reignite economic growth, including assisting local governments with debt repayment and cutting key interest rates.
