China's economic growth slows to 4.7% due to weak retail sales and industrial production

From BNN Bloomberg: 2024-07-14 22:35:00

China’s economic growth dropped to a five-quarter low at 4.7%, below economist expectations, with key figures showing slower retail sales and industrial production growth, as well as a property sector contraction. Calls for Beijing to stimulate growth intensify as President Xi Jinping convenes a pivotal policy meeting, aiming to boost confidence and promote healthy growth.

Despite efforts to encourage spending, retail sales rose at the slowest pace since 2022, reflecting consumer caution amid weak household consumption. Economists warn of continued challenges, including the reluctance to spend and high youth unemployment, affecting overall economic outlook and generating concerns for the future.

The disappointing data led to Chinese stocks in Hong Kong sliding, underlining the significance of the Third Plenum gathering where top officials are expected to discuss the long-term economic vision. Analysts urge addressing the property downturn, boosting technology self-sufficiency, and easing fiscal strains during the meeting to navigate uncertainties and revive economic growth.

China’s emphasis on supply-side measures to restart growth contrasts with persistently weak domestic demand, driven by a prolonged property crisis and uncertain export prospects. Limited options for rate cuts, concerns over capital flight, and challenges in government spending present hurdles as Beijing seeks sustainable economic recovery amid global trade tensions.



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