China’s unemployment rate ticked up, and export-led growth relied on deflation, keeping goods competitive but widening trade gaps|Anna Frodesiak
China’s economy expanded by 5% in 2024, but uneven growth highlights economic vulnerabilities. Industrial output grew faster than retail sales, showing strong exports but weak domestic demand.
The unemployment rate climbed, while export-led growth relied on deflation, keeping goods competitive but widening trade gaps.
Analysts fear proposed US tariff hikes by President-elect Donald Trump may deepen economic strains.
Domestic consumption remains weak despite a $1.36 trillion stimulus package targeting infrastructure and local government debt.
Falling wages and rising layoffs highlight internal challenges, especially in the private sector.
Experts question official data accuracy, with estimates suggesting real growth may have been just 2.4%—2.8% last year.
China’s growth outlook for 2025 remains uncertain as structural issues and external pressures intensify.