BEIJING, Feb. 27 (Xinhua) -- As the world's second-largest economy, China's gross domestic product (GDP) grew 5 percent year on year in 2024, reaching a record of 134.9084 trillion yuan (about 18.58 trillion U.S. dollars). China's growth rate is among the highest of the world's major economies, reinforcing its continued role as a key driver of global economic growth. In its pursuit of high-quality development, China's economy has shown new vitality.
BOOMING CONSUMPTION
In recent months, China has seen its consumption sector, a key driver of economic growth, unleash more vitality, with hustle and bustle in the market and new demand fueling and shaping trends.
Vibrant consumer spending data stemming from the 2025 Spring Festival holiday confirm a strong and energetic start to the year for the world's second-largest economy.
Domestic travel spending during the holiday reached 677 billion yuan (about 93.25 billion U.S. dollars), representing a 7-percent increase from the same period last year, according to data released by the Ministry of Culture and Tourism.
The Spring Festival box office also enjoyed a very positive 2025, with revenue soaring to 9.51 billion yuan (about 1.31 billion U.S. dollars) -- a record high.
China's policy-backed trade-in program for consumer goods served as a further boost, significantly lifting holiday market sentiment. Sales revenues for household appliances and audiovisual equipment surged by 166.4 percent compared to the 2024 holiday period, while sales of communication devices skyrocketed by 181.9 percent year on year, data from the State Taxation Administration revealed.
POLICY BOOSTS
Since last September, China has unveiled a series of measures to boost the economy. These include cuts in the market-based benchmark lending rates and banks' reserve requirement ratios, and a package of 10 trillion yuan in new fiscal funding to address local government debt risks. A trade-in program for consumer goods such as appliances and automobiles was expanded to revive consumption.
In the real estate sector, adjustments have also been made to home purchase mortgage rates, transaction taxes and downpayment ratios in order to stabilize the market and reverse a downturn.
Looking ahead, China plans a stronger macroeconomic policy push for 2025. Authorities have pledged to adopt a more proactive fiscal policy and a moderately loose monetary policy, strengthen unconventional counter-cyclical adjustments, and expand domestic demand across all sectors.
As part of the policy push, the country will significantly increase the size of its fiscal deficit in 2025, and allocate a larger scale of government bonds, including ultra-long special treasury bonds and local government special bonds, according to Vice Minister of Finance Liao Min.
Final details, including this year's GDP growth target, deficit-to-GDP ratio and other arrangements, will be available during this year's annual sessions of China's top legislature and political advisory body in March.
ROBUST ENGINE
As the world's second-largest importer and a major trading partner of more than 150 countries and regions, China's unwavering commitment to opening up and sharing development benefits with others has created new opportunities for the growth of other countries, according to analysts.
For seven consecutive years, China has hosted the China International Import Expo, inviting businesses from around the globe to explore the vast potential of its consumer market. Having fully opened its manufacturing sector to foreign investors, China is committed to further opening up sectors such as telecommunications, education, medical services, and more.
In December 2024, the World Bank raised its forecast for China's economic growth in 2025, citing "higher-than-expected fiscal spending and more decisive policy actions to stabilize the property sector, following recent guidance from policymakers," which could push growth above baseline expectations.
