Beijing Unveils Major Support Measures to Reignite Slowing Economy

China's economy grew at one of the slowest rates in decades last year as its officials anxiously anticipated a trade dispute with Donald Trump, the incoming US president. According to data. Beijing has recently launched its most robust support measures in years in an attempt to boost an economy that has been struggling on several fronts, such as a protracted debt crisis in the real estate market and weak consumer spending.

The growth took place in the face of a "complicated and severe environment with increasing external pressures and internal difficulties", the National Bureau of Statistics (NBS) said.

Retail sales, a crucial indicator of consumer sentiment, increased 3.5%, which is a significant decline from the 7.2% rise seen in 2023. However, industrial production increased by 5.8% from 4.6% the year before.

With the exception of the financially turbulent years of the COVID-19 pandemic, the GDP growth rate is the lowest China has seen since 1990. According to analysts polled by AFP, growth might dip to as low as 4.4% in 2025 and possibly below 4% the year after.

China has yet to recover from the pandemic, with domestic spending stagnant and indebted local governments weighing on overall GDP. In a rare bright spot, official data released earlier this week revealed that China's exports reached a record high last year. However, rising concerns about the country's enormous trade surplus suggest that Beijing may be unable to rely on exports to sustain an otherwise underperforming economy.