China’s economy is expected to slow in Q2 due to trade tensions with the U.S., with GDP growth forecast at 5.1%. Analysts predict a need for more stimulus to combat slowing exports and weak demand. Investors await a Politburo meeting for potential economic policy changes.
GDP growth projected to slow to 4.5% in Q3 and 4.0% in Q4, highlighting economic challenges ahead. Analysts predict Beijing will implement new supportive measures in the second half to counteract factors like slowing exports, consumer spending, austerity measures, and a property slump.
China’s GDP growth is forecast to cool to 4.6% in 2025 and 4.2% in 2026, falling short of official targets. Quarterly growth is expected to slow to 0.9% in Q2. Government to release Q2 GDP data and June economic indicators on July 15.
Analysts expect China’s central bank to cut key interest rates and reserve requirements in Q4 to cushion the economy. Stimulus measures may not be enough to combat deflation, with analysts predicting a further decline in GDP deflator and low consumer price growth.
Expectations grow for China to accelerate supply-side reforms and boost domestic demand to offset economic challenges. Government advisers emphasize the need for household sector growth in the upcoming five-year policy plan to address trade tensions and deflation risks.
Read more at Yahoo Finance: China’s GDP growth set to slow, raising pressure on policymakers: Reuters poll