China's GDP growth dips to 4.6% amid ongoing challenges
China faces new economic challenges as its GDP growth rate slowed to 4.6% year-over-year, marking the lowest level since early 2023. If this trend persists through the year, it could disrupt Beijing's projections.
In the third quarter of this year, China's GDP growth rate decelerated to 4.6% year-over-year, the lowest since pandemic restrictions began to lift in early 2023, according to data by the National Bureau of Statistics (NBS) released on Friday, in contrast, the second quarter recorded GDP growth of 4.7%.
China slows down
According to an analysis by the Japanese broadcaster NHK, the economic slowdown in China continues due to a decline in business and consumer confidence, coupled with challenges in the real estate market and subdued domestic demand.
China is facing a "complicated and severe external environment ... as well as new problems of domestic economic development," although the NBS noted in comments accompanying the data that "figures showing a forecast-beating rise in September retail sales."
Beijing activates the "defibrillator"
At the end of September, authorities in Beijing implemented measures to stimulate the economy, including lowering interest rates, reducing mortgage costs, and increasing financial support for struggling developers.
However, as the Nikkei Asia portal reported, many analysts argue that these measures are insufficient to restore consumer and business confidence or relieve deflationary pressures.
"We wouldn't say the 5% full-year target is out of reach for now. But more support will be necessary ... probably via monetary policy. There could be further short-term rate cuts," said Zhang Zhiwei, chairman and chief economist of Pinpoint Asset Management, as quoted by the "South Asia Morning Post."
