BS EDIT: China's growth slows, raising 2024 economic concerns

By Business StandardPublished On Oct 21, 2024

China's growth slowdown

China's economy grew 4.6% year-on-year between July and September, the slowest in six quarters, raising doubts about achieving the 2024 growth target of 5%

Measures falling short

Despite stimulus measures like mortgage rate cuts and a 100 bn yuan budget advancement, these efforts haven't addressed China's deep structural economic issues

Real estate & local debt

China’s real estate market and local government debt remain major bottlenecks. Recent policy initiatives have not fully addressed these deeper economic challenges

Subdued consumer demand

Retail sales grew 3.2% in Sept, but consumer demand remains weak. Export growth slowed sharply to 2.4%, down from 8.7% in August, adding to economic concerns

Risks from US tariffs

Trade tensions, particularly with the US, pose risks. If Donald Trump returns to office, potential tariffs could further dampen China’s export prospects

Need for reforms

Beijing must prioritise structural reforms. Premier Li Qiang emphasised removing trade barriers and creating a national market to revive economic momentum