Chinese Economy To Slowdown

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Chinese Economy To Slowdown

Chinese Economy To Grow 4.8%

According to a recent poll, the growth rate of the Chinese economy will only be 4.8% in 2024. That will be a lot lower than the target set by the government.

In 2025, the growth of China will further decline to just 4.5% which will further impact the consumer demand. According to experts, this put more pressure on the Chinese officials to announce even bigger stimulus measures.

Growth To Decline To 4.5% In 2025

When compared with the Q3 GDP growth from the earlier year, it was around 4.5%. This is slower than the Q2 growth of 4.7% and is one of the weakest readings since 2023.

Ever since September, Chinese officials have been trying to spur growth by announcing one stimulus package after another. However, it seems that this will not be enough to achieve the growth target of 5% in 2024.

It seems that the deflationary pressure has seriously impacted the consumption side. In turn, this has lead to slower growth in 2024.

According to one expert, an increase in economic activity will be seen during Q4 as more stimulus will make its way into the economy. Even then, the expert has only set a target of 4.9% growth this year.

If we look back, it is very rare for China to miss its growth targets with the last such incident happening in 2022. At that time, the economy was struggling with the pandemic, but today, there's no such emergency.

All of this points to one thing: The stimulus packages announced by China are insufficient. Also, the government is just trying to fix the issue temporarily without dealing with the root causes.

With slow global demand and an even weaker property sector facing massive debts, the Chinese economy is facing multiple headwinds.

Amidst all of this, the need of the hour is an oversized stimulus package that dwarves all the previous ones. That's the only way to make some more room for growth in the Chinese economy.

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