China’s economic growth in 2024
China’s economy has shown signs of resilience, achieving the growth target set by the government for 2024. According to data released by the National Statistics Office, gross domestic product (GDP) increased by 5%, slightly exceeding the expectations of the Bloomberg consensus, which predicted a growth of 4.9%. This result was supported by economic stimulus implemented in the latter part of the year and by a significant increase in exports
.
The threats of US tariffs
However, economic optimism is overshadowed by impending US tariffs, which could pose a significant obstacle to growth. The president-elect of the United States, Donald Trump, has announced the possibility of introducing tariffs of up to 60% on Chinese goods, a measure that could have a devastating impact on trade between the two countries. These threats have already prompted many global companies to anticipate shipments, contributing to increased economic growth in
2023.
Implications for Chinese exports
Potential tariffs, not only from the United States but also from the European Union and other trading partners, could make Chinese exports less competitive in the global market. This scenario could lead to a decrease in demand for Chinese products, negatively affecting economic growth. In addition, the yuan showed a slight strengthening of 0.1 percent against the dollar, which could further complicate the situation for Chinese exporters
.
Future strategies and monetary easing
In response to these challenges, China has promised further monetary easing and increased public spending to support the economy. These measures are essential to prepare for a possible scenario of commercial uncertainty and to maintain economic growth. The CSI 300 benchmark index of Chinese stocks showed signs of recovery, erasing an initial loss and rising by 0.5% after the publication
of economic data.
In summary, while China has achieved important economic goals, future challenges related to tariffs and export competitiveness require careful monitoring and proactive strategies to ensure long-term sustainable growth.