China’s economy grew by 5% in 2024, in line with government targets but at the slowest rate since 1990 outside the Covid pandemic, according to official data.

Growth accelerated through the year, with an expansion of 5.4% in the final quarter, up from 4.6% in the third quarter, according to Beijing’s National Bureau of Statistics.

The bureau reported “steady progress amid stability” but pointed to a “complicated and severe environment with increasing external pressures and internal difficulties”.

The statistics bureau said the economy had “recovered remarkably” in the latter part of 2024, after the government announced a series of stimulus measures. These included interest rate cuts, as well as a trade-in scheme for consumer goods, and tax incentives for property purchases.

Across 2024 as a whole, industrial output was up by 5.8%, helped by a strong performance in manufacturing, but retail sales increased by only 3.5%, despite policies aimed at stimulating domestic demand.

Beijing has been attempting to rebalance growth away from a heavy dependence on exports, towards domestic consumption. However, a property downturn, and the after-effects of the Covid pandemic, appear to have continued to weigh on sentiment.

Lynn Song, a China economist at ING, said: “The key question is if we can see consumer confidence bottom out and begin a meaningful recovery. Pessimism has grown quite entrenched as of late, and it will take a lot of effort to break out of the doldrums.”

Some commentators have raised concerns about the accuracy of China’s economic data, given the political nature of the way the statistics are reported.

China is expected to be hit hardest by the tariffs threatened by Donald Trump. The incoming US president, who will be inaugurated on Monday, has suggested he could slap an across-the-board 60% tax on all Chinese imports.

Some US companies have been stepping up imports from China in recent months, in an attempt to outrun the tariffs – although it is unclear whether Trump’s plans will be put into effect immediately.

Sam Jochim, an economist at EFG Asset Management, said: “Export growth was strong in Q4 [the fourth quarter], reflecting a front-loading of orders from the US in preparation for Trump tariffs.

“There was an associated rise in manufacturing output but clearly, if all else remains equal, these drivers of growth will find it difficult to sustain this momentum in 2025.”