China’s economy clocked a slowdown in the April-June quarter in 2024, official data revealed on Monday. The second-largest economy in the world observed a dampened sentiment in the economy as it clocked a growth rate of 4.7 per cent in the second quarter in the current calendar year, the data showed.
This growth rate marked the slowest momentum for the Chinese economy since the first quarter of 2023, reported Reuters. This slowdown was attributed to an extended decline in the economy’s property market and job security dampening the domestic demand.
In the first quarter of 2024, the economy clocked a growth rate of 5.3 per cent. The report cited an analyst from Citi and said, “Soft domestic demand could continue to weigh on inflation and start to erode production strength. All eyes could be on the third plenum and the Politburo meeting this July.”
The growth data came as a shock for the Chinese economy as the country attempts to boost the confidence in the economy at the crucial leadership meeting scheduled for Monday. For 2024, the Chinese government plans to clock a growth rate of 5 per cent. However, analysts believe the target might need more stimulus to be achieved, the report noted.
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To keep a check on the prolonged crises in the country's property market, the country has promoted investment in infrastructure and also poured in more funds into high-tech manufacturing. The country has witnessed an uneven economic growth in the year, as industrial output has overpowered the demand at the domestic level, adding on to the deflationary risks amidst the property crisis and the increasing level of debt for the government.
Notably, last month, Pan Gongsheng, governor of the country’s central bank, said that the lender would use tools such as interest rates and reserve requirement ratios to back economic development.