(MENAFN– The Rio Times) China’s economy grew by 4.6% in Q3 2024 compared to Q3 2023, the slowest rate since early 2023. The government aims for around 5% annual growth, which now seems tough to achieve.
Industrial production rose by 5.4% in September year-on-year, up from 4.5% in August. Retail sales also increased by 3.2% in September, better than 2.1% in August.
Fixed asset investment grew by 3.4% in the first three quarters of 2024, consistent with January to August figures, indicating steady economic activity despite hurdles.
The real estate sector struggles, with new home sales down 24% and construction starts down 22% from the prior year. Real estate investment dropped 10.1% in the first three quarters.
Beijing has introduced measures like lowering interest rates and supporting struggling developers to stimulate growth. However, some analysts doubt these efforts will fully restore confidence among consumers and businesses.
China’s exports have declined as global demand weakens and trade barriers rise, putting additional strain on the economy. Although the government plans to increase fiscal stimulus, there are concerns that direct financial support for households may not materialize. The future of the economy relies on the effectiveness of these policies and any potential further actions.
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