China Says Economy Grew 5% Last Year, Driven by Exports

Published On Jan 16, 2025, 9:01 PM

China's economy grew by 5% last year, supported by strong exports and significant private investment in manufacturing despite ongoing issues in the domestic construction sector. The National Bureau of Statistics indicated that export-driven growth, particularly in sectors like automotive, helped to offset a downturn in real estate and construction. Analysts express cautious optimism about the economy's recovery, although some remain skeptical of the official growth figures.

Stock Forecasts

BABA

Positive

Given the recovery in China's economy driven by strong exports and manufacturing investment, companies that are closely tied to exports may see positive momentum. This can be beneficial for companies in sectors such as technology and automotive that are likely to perform well due to increased Chinese production and exports.

DHI

Negative

The construction sector's slump suggests caution for domestic-focused companies in that industry. Firms that rely heavily on construction activity may struggle in the near term. This may impact companies like DHI (D.R. Horton, Inc.) that are highly exposed to the Chinese market.

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