China's economic growth is lower than expected, the 5% target is difficult.

Official figures released on July 15th showed that China's economy grew by 4.7% in the second quarter of 2024 compared to the same period last year, lower than the 5.1% growth forecast by analysts at Reuters (UK).

The Chinese economy faces increasing instability and difficulties. (Photo: Beijing streets.) (Photo: Linh Chi)

Compared to the previous quarter, China's Gross Domestic Product (GDP) grew by 0.7% in April-June 2024, lower than the forecast of 1.1% and compared to the revised 1.5% growth of the previous quarter.

Analysts predict that policymakers will have to implement further measures to support the economy amid a declining property market, rising local government debt, and weak private sector spending.

Analysts at Citi Bank said that, prior to the release of the data, weakening domestic demand could continue to put pressure on inflation and begin to dampen manufacturing activity.

All attention may be focused on the third plenary session and the meeting of the Chinese Politburo this July.

The government has set a target of around 5% economic growth in 2024 – a goal that many analysts consider ambitious and may require more stimulus measures.

According to the website of China's National Bureau of Statistics, the aforementioned target is "difficult to achieve" in the first half of this year because businesses are under relatively high pressure and key economic sectors are facing numerous risks.

In addition, China's economic growth in the second quarter was also affected by short-term factors such as extreme weather and flooding.

To cope with weak domestic demand and the real estate crisis, the world's second-largest economy has recently increased investment in infrastructure and poured money into high-tech manufacturing.

China's economic growth in 2024 is uneven, with industrial output exceeding domestic consumption, raising the risk of deflation amid a weakening real estate market and rising local government debt.

Meanwhile, consumer prices in June 2024 rose for the fifth consecutive month, but fell short of expectations, while factory deflation continued, as government measures have not been significantly effective in boosting domestic demand.

Source: https://baoquocte.vn/kinh-te-trung-quoc-tang-truong-thap-hon-du-bao-muc-tieu-5-gap-kho-278755.html