BEIJING (Reuters) – China’s gross domestic product (GDP) is expected to exceed 130 trillion yuan (17.1 trillion euros) in 2024, President Xi Jinping said in his New Year speech on Tuesday, promising more proactive policies to promote growth in 2025.

Growth in China, the world’s second-largest economy, has been hampered by a prolonged slowdown in the property market, rising local government debt and weak consumer confidence.

Since the end of September, the authorities have increased stimulus measures, including interest rate cuts and a relaxation of rules on home purchases, to support the real estate market and demand interior.

China’s rebounded economy is on an upward trajectory as the country has proactively responded to shocks brought on by a changing international and domestic environment, Xi Jinping said.

“The current functioning of the economy faces new challenges, including uncertainties in the external environment and pressure from the shift to new growth engines,” he said.

“But we can prevail through our hard work. As always, we develop through thick and thin, and we become stronger in difficult times,” added the Chinese president.

“We have to be confident.”

Xi Jinping, quoted by state media, said earlier on Tuesday that China’s gross domestic product (GDP) is expected to grow by around 5% in 2024.

However, exports, a key driver and bright spot for the Chinese economy, could be threatened by higher tariffs promised by US President-elect Donald Trump after he takes office on January 20.

China’s budget deficit is expected to reach 4% of GDP in 2025, according to separate sources, while the government plans to maintain a growth target of around 5%.

(Reporting by Ella Cao, Ethan Wang, Ellen Zhang and Ryan Woo; Augustin Turpin and Etienne Breban; editing by Kate Entringer)

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