China's economy grew 5% year-on-year in 2024 and picked up in the final quarter as a series of stimulus measures were introduced, helping to meet Beijing's growth targets.

According to the National Bureau of Statistics of China, GDP grew by 5.4% in the fourth quarter, which was better than expected. Economists polled by Reuters expected growth of 5.0% in the final quarter.

The growth rate was faster compared with 4.6% in the third quarter, 4.7% in the second quarter and 5.3% in the first quarter.

The annual economic growth rate is lower than the 5.4% growth rate in 2023 after the epidemic. In late December, the National Bureau of Statistics revised GDP growth for 2023 to 7.4% as part of an annual preliminary data revision, according to CNBC calculations of official data. Retail sales rose 3.7% year-on-year in December, beating Reuters' forecast of 3.5%. Industrial output rose 6.2% year-on-year, beating expectations of 5.4%, highlighting the imbalance between China's domestic production and weak demand.

Fixed asset investment will grow by 3.2% in 2024, while a Reuters poll expects growth of 3.3%.

China has always been committed to promoting economic growth and has taken a number of measures to this end.

Since late September, Chinese authorities have called for curbing the real estate slide, cutting interest rates and announcing a five-year fiscal plan worth 10 trillion yuan ($1.4 trillion) to ease the financing crisis of local governments. Beijing has also expanded a program for consumers to trade in used cars and household appliances and buy new ones at discounted prices.

Senior leaders promised "aggressive" fiscal measures and a "moderately loose" monetary policy stance this year.

Some analysts expect the stimulus could start taking effect this year, but it will take longer to see a significant impact.

The housing downturn and uncertainty about future income have weighed on consumer spending and business confidence, exacerbating deflation fears.

Official data last week showed Chinese consumer inflation remained just above zero, while wholesale prices fell for the 27th consecutive month in December.

The government is expected to announce its official growth target for 2025 and other stimulus measures at the annual parliamentary meeting in March.

Economists predict that China's GDP growth target for 2025 will remain around 5%, or even slightly lower.

Friday's data comes just days before Donald Trump is set to be inaugurated as the next US president on January 20. Trump has said that soon after taking office, he plans to impose additional tariffs of at least 10% on Chinese goods. He has also appointed some China hawks to key cabinet positions.