The new data released by the National Bureau of Statistics (NBS) comes a day after China and the U.S. signed a long-awaited phase one deal, marking a ceasefire in the 18-month-long trade war which saw the world's two largest economies slap 25 per cent tariffs on about half a trillion-dollar worth of each other's exports.
"The latest GDP and IP data provides a very positive start to the Chinese New Year for China's economy", said Rajiv Biswas, Asia Pacific chief economist at IHS Markit in Singapore.
Chinese officials say the consumer spending has increased showing success of China's efforts to rejig its economy from one based on exports to more reliant on consumer spending.
While China's economy had been gradually losing steam over the first three quarters, growth stabilised at 6.0 per cent in the last three months of 2019 - the same pace as in the third quarter, according to the National Bureau of Statistics (NBS).
On a quarterly basis, the economy grew 1.5 percent in October-December from the previous three months, in line with expectations.
Meanwhile, the dollar scaled an eight-month high against the yen on Friday after upbeat U.S. retail sales and jobs data, while the yuan got a lift after China's economic data brightened the mood already cheered by a Sino-U.S. trade deal. But UOB economists Ho Woei Chen and Peter Chia said in a recent note that the deal is unlikely to catalyse a strong rebound in growth for China as the bulk of USA tariffs remain in place.
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Fixed-asset investment, a key driver of domestic demand that includes spending on infrastructure, picked up to 5.4% (link in Chinese) for the whole of 2019 from a 5.2% pace for the first 11 months of the year but was lower than the 5.9% gain for full year 2018.
Retail sales growth came in at 8.0 per cent, down from 9.0 per cent in the year before.
Kuijs noted the trade deal bodes well for exports, as well as sentiment on business investment and consumption.
He added that major policy easing is unlikely as well, given the improvement in external outlook after the phase one trade deal and other signs of stabilisation.
Beijing has been relying on a mix of fiscal and monetary steps to weather the current downturn, cutting taxes and allowing local governments to sell huge amounts of bonds to fund infrastructure projects. However, the growth rate was the lowest in 29 years.
The central bank has tried to lower borrowing costs and channel credit to entrepreneurs who generate China's new wealth and jobs.
Even with additional stimulus and assuming the trade truce holds, economists polled by Reuters expect China's growth will cool this year to 5.9pc.