Experts have predicted that the growth rate of the world’s second-largest economy, China, will slow down next year. Shockingly, a survey conducted by Bloomberg depicted China’s growth to slow to 4.5 percent in the coming years. Among the various factors contributing to the lower growth rate of GDP, China’s property sector is playing a vital role in affecting its GDP growth the most. However, geopolitical tensions, curbs on advanced technology by the US, and an investigation into China’s export dominance in EVs by Europe are also among the main factors that may lower China’s GDP in 2024. Still, China’s housing seems to be the biggest problem. Since Bloomberg conducted a survey and showed its results, people have been keen on China’s activity in the global market and concerned over its property sector. Let’s delve deep into the details and unfold more details. Swipe down the page.
The latest economic data of China has put the growth of about 5 percent within reach and lessened the likelihood of stimulus end of this year. However, the property issue has been a serious concern among all other factors clouding the GDP forecast for the next year. On Wednesday, October 18, 2023, the Gross Domestic Product figures for the third quarter were released surpassing the anticipated strong consumer spending which was quite difficult to expect a few months ago China’s President Xi Jinping stabilized the property sector and averted deflation.
The economic challenges that are being faced by China include persistent geopolitical tensions, Europe investigating its export dominance in EVs, and the US strict curbs on advanced technology. Bloomberg conducted a survey to predict China’s growth in the next year which is said to slow down in 2024 to 4.5 percent. But the retail sales remain a positive factor for China’s GDP. On Wednesday, the retail sales data showed a recovery in spending on everything from alcohol and restaurants to cars for the same period of the last year.
Due to the fall in China’s unemployment rate and the decline in household savings rates consumers seem to be more confident depicting a tighter labor market. The Citi economists wrote, “China’s GDP growth was a strong beat perhaps representing the strongest confirmation of the cyclical bottom.” They raised their growth projection for this year from 5 percent to 5.3 percent after the data. Stay tuned to this website for more details and further updates.