China’s economy experienced a slowdown in the third quarter, growing at its slowest pace in a year and a half, according to government figures. The world’s second-largest economy expanded by 4.6 percent year on year, compared to 4.7 percent in the previous quarter. This weak performance was attributed to factors such as weak consumer demand and struggles in the property market.
Despite the challenges, the National Bureau of Statistics highlighted positive changes in major indicators, indicating a generally stable economy. However, they also recognized the increasingly complex and severe external environment, emphasizing the need to strengthen the foundation for economic recovery and growth.
To boost the economy, Beijing has implemented measures such as lowering mortgage rates and providing banks with more flexibility to issue loans. These efforts have not fully convinced investors and analysts, who believe that substantial stimulus is required to spur growth.
With a growth target of around 5 percent for 2024, analysts are skeptical that China will achieve this without significant stimulus. The economy grew by an average of 4.8 percent in the first three quarters, meaning it would need to expand significantly in the final quarter to meet the target. This highlights the challenges facing China as it seeks to navigate a complex economic landscape and maintain growth momentum.
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