China’s economy expanded by 4.6% in the July-September quarter of 2024, according to the National Bureau of Statistics, highlighting the slow pace of recovery despite recent government efforts to stimulate growth. This marks a slight decline from the previous quarter’s 4.7% growth and falls short of the country’s 5% annual target for 2024.
Key Highlights:
- Slowdown in Growth: China’s economic growth rate of 4.6% in Q3 2024 underscores the challenges the country faces in reviving consumer demand and addressing the ailing property sector.
- Property Sector Struggles: Property investment plunged 10.1%, while new home sales fell by a significant 22.7%, highlighting ongoing weaknesses in the housing market that continue to drag the economy.
- Moderate Factory Output and Retail Sales: For the first three quarters of 2024, factory output grew 5.8%, and retail sales rose 3.3% compared to the previous year, suggesting moderate gains in these sectors.
- Export and Import Declines: China’s export growth slowed sharply in September, increasing only 2.4%, while imports grew by a mere 0.3%, indicating weaker-than-expected trade performance.
Despite a series of measures, including mortgage rate reductions and relaxed bank lending requirements, Beijing has yet to unveil the large-scale stimulus packages some analysts believe are necessary to achieve its ambitious 5% growth target. Analysts continue to stress the need for more aggressive policies to spur consumer confidence and revive the property market.
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Last modified: October 21, 2024
