China says its economy grew 5% last year, driven by exports

The economic scars of China’s real estate crash are evident in the country’s many building materials markets. Owners of once-bustling stores that sell everything from light fixtures to doors to toilet bowls are hurting for customers.

At the same time, Chinese exports have increased significantly. 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 increase production for export.

On Friday, the National Bureau of Statistics said China’s economy grew by 5 percent last year, as strong growth in exports and strong investment in factories and industrial equipment more than offset a persistent slowdown in the construction sector.

The government set a target of “around 5 percent” almost a year ago. The 2024 figure was only slightly lower than China’s growth rate of 5.2% in 2023, when the country was rebounding from nearly three years of municipal lockdowns, mass quarantines and other strict coronavirus measures. pandemic.

The economy grew stronger from October to December than in any other quarter of the year. Buoyed by strong car sales, China’s economy grew late last year at a pace that, if extended for a full year, would represent a growth rate of 6.6 percent. .

While official figures are often met with skepticism, government economists insist the economy has regained its footing. “China’s economy is truly recovering amid ups and downs,” said Yang Ping, director of economic research at the National Development and Reform Commission, China’s top economic planning agency.