BEIJING: As authorities struggle to reignite consumption amid a persistent debt crisis in the property sector, an AFP survey found that China’s economy likely expanded at its slowest rate this year ahead of data on Friday ( Oct 18 ).
In order to revive the world’s second-largest economy and put an end to years of stagnant business activity with a view to achieving 5 % monthly growth, officials have recently unveiled a number of methods.
However, enthusiasm has waned as a result of a sluggish marketplace rally fueled by hopes for a long-awaited “bazooka stimulus” as authorities have refrained from releasing a particular figure for the rescue or putting together any of the pledges.
Researchers polled by AFP predict that the economy will grow 4.5 % in the second quarter, up from 5.3 % in the previous three months and 5.3 % in the first three months.
” China’s business got a shot in the arm in September”, said Harry Murphy Cruise, an analyst at Moody’s Analytics, referring to the signal, but added that buyers have been left “disappointed” by the lack of further disclosures.
In September, Beijing made a number of policy changes to help the business, including price cuts and loosening restrictions on home purchases.
But those supports “wo n’t be enough” to correct woes in the property market – once a key driving force in the Chinese economy, Murphy Cruise warned.
Economists surveyed by AFP predict 4.9 per cent general rise in 2024 – even worse than last season, which was the weakest in years, outside of COVID-19.
Beijing has stated that it has “full trust” that it will meet its goals this year and revive the market, but analysts warn that officials had go further and invest new funds before the end of the year.
The need for support has been highlighted by a long-running series of data produces pointing to slow customer activity, tepid inflation, modest rise in imports and surging children employment.