China Marks Slowest Pace In Economy Since Covid Restriction (image @Pixabay)
China shows slowest economic growth during the third quarter of 2024. This is the slowest pace the country has witnessed in last two and half years. According to China’s National Bureau of Statistics, Beijing’s economy grew 4.6 percent in the July-September period, while compare to the 4.7 percent growth in the previous quarter.
The figure is reported to be the lowest for Beijing after coming out from its ultra-strict “zero-COVID” pandemic era.
The country has announced a series of measures to increase the economy in recent weeks eyeing for annual growth target of 5 percent. The measures were dragged down by weak consumer confidence and a prolonged property market dip, including the lowering mortgage rates. Giving banks higher leeway to permit loans also played a part.
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In a statement released, China’s National Bureau of Statistics said, “Generally speaking, the national economy was generally stable with steady progress in the first three quarters, and the effects of policies continued to manifest with major indicators showing positive changes recently… we should be aware that the external environment is increasingly complicated and severe, and the foundation for sound economic recovery and growth still needs to be strengthened”.
China also largely failed to impress investors and market analysts who have underscored the need for major stimulus to jumpstart growth.
While Beijing says that it has “full confidence” in achieving its annual growth goal, economists opine that more fiscal stimulus is needed to revive activity and restore business confidence.
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Major issue for Beijing had been a prolonged crisis in the property sector. It had been a key aspect of growth but is now mired in debt.
Officials said they would boost credit available for unfinished housing projects to more than US$500bn. Authorities also promised to facilitate the renovation of a million homes, a move intended to boost activity in the property sector, reported The Guardian.
