MARKET OUTLOOK - China's Economy Expected to Maintain Positive Momentum in Q1 2025

According to Jacqueline Rong, the chief economist for China at BNP Paribas (EPA:BNPP), the Chinese economy is expected to maintain its positive momentum in the first quarter of 2025. Rong noted that the economic recovery continues into November and that the country is on track to achieve its target of "approximately 5% growth" for 2024.

The drivers of this recovery include recent stimulus measures and resilient exports supported in part by the pulling forward of shipments to the U.S. due to tariff concerns. "However, whether the momentum of the recovery can be maintained in the first quarter of 2025 will depend on the speed and scale of the implementation of the stimulus measures outlined in the Central Economic Work Conference, as well as the timing of potential U.S. tariffs," Rong stated, adding that the People's Bank of China may continue to lower the policy interest rate and reserve requirement ratio.