China’s economy demonstrated robust growth by recording a 5.4% increase in the fourth quarter of 2024, according to data released by the National Bureau of Statistics. This performance follows a 4.6% expansion in the third quarter, outperforming market expectations of a 5% growth for the recent quarter.
On a quarterly basis, China’s Gross Domestic Product (GDP) experienced a rise of 1.6% in Q4 2024. This marks an improvement from the 0.9% increase observed in the preceding quarter and aligns perfectly with the anticipated figure of 1.6%. These indicators reflect a steady economic recovery as the country navigates through various post-pandemic challenges.
In terms of consumer activity, December’s retail sales saw a year-on-year increase of 3.7%, surpassing both the prior month’s growth of 3% and the expected 3.5%. Similarly, industrial production numbers outperformed forecasts, growing by 6.2%, above the expected 5.4% and matching November’s growth rate. These figures signal a positive trend in both consumer spending and industrial output.
However, Fixed Asset Investment data revealed a slight slowdown, with a year-to-date increase of 3.2% in December, falling short of the 3.3% anticipated and remaining unchanged from the previous year’s performance. This could indicate some caution in investment sentiment despite the overall positive outlook.
In response to these economic indicators, the Australian Dollar’s performance remained muted. The AUD/USD currency pair hovered around 0.6210, showing minimal change for the day. The lack of significant movement in the exchange rate suggests that even with favorable economic data from China, market reactions may be muted amid ongoing uncertainties.
