BEIJING (Reuters) – Earnings at China’s industrial corporations fell for a 3rd straight yr in 2024, official knowledge confirmed on Monday, underlining the urgency for policymakers to step up assist for an economic system going through tariff threats from the brand new Trump administration.
Industrial income grew 11% in December from the identical month final yr, following a 7.3% drop in November, based on Nationwide Bureau of Statistics (NBS) knowledge.
For the entire yr, earnings at industrial corporations dropped 3.3%, extending a 4.7% decline within the January-November interval, NBS knowledge confirmed. That compares with a 2.3% decline in 2023.
China’s GDP grew 5% final yr, reaching the official goal, following intensive authorities stimulus measures. However the economic system has been beset by a stuttering property market, flagging home demand and fragile enterprise confidence.
Manufacturing facility-gate costs in 2024 prolonged right into a second straight yr of declines, official knowledge confirmed, ripping into company income and employees’ incomes.
Policymakers within the second half of the yr rolled out a number of rounds of financial stimulus measures, together with increasing a client items trade-in scheme to spur demand.
December financial knowledge, launched earlier this month, indicated imbalanced progress, with industrial output outperforming retail gross sales, and unemployment fee ticking increased.
Exports gained momentum in December, partly fuelled by factories dashing stock abroad as they braced for heightened commerce dangers below a Trump presidency.
U.S President Donald Trump, who took workplace on Jan. 20, stated the following day his administration was discussing a ten% punitive obligation on Chinese language imports.
Earnings at state-owned corporations dropped 4.6% in 2024, these at overseas corporations fell 1.7% and private-sector firms recorded a 0.5% rise in earnings, based on a breakdown of the NBS knowledge.
Industrial revenue numbers cowl corporations with annual revenues of a minimum of 20 million yuan ($2.74 million) from their most important operations.
($1 = 7.3125 renminbi)
