China's economic challenges deepen amid slowed GDP growth
China is facing new economic challenges. China's GDP growth rate slowed to 4.6% year-on-year, marking its lowest level since the beginning of 2023. If this trend continues until the end of the year, it could disrupt Beijing's plans.
In the third quarter of this year, China's GDP growth rate slowed to 4.6% year-on-year, marking its lowest level since early 2023 when pandemic restrictions were being lifted, according to data published on Friday by the National Bureau of Statistics (NBS). In the second quarter, China's GDP grew by 4.7%.
China slows down
According to analyses by Japanese broadcaster NHK, China's economic slowdown continues following a collapse of business and consumer confidence, coupled with difficulties in the real estate market and low domestic demand.
China is facing new circumstances and new challenges in domestic economic activities, yet most indicators on production and demand improved and market expectations also became better," wrote the NBS in comments published along with the data.
Beijing activates "defibrillator"
At the end of September, authorities in Beijing took measures to stimulate the economy, including lowering interest rates and mortgage costs and increasing financial support for developers in difficult situations.
However, the Nikkei Asia portal writes that many analysts argue that these measures will not be enough to restore consumer and business confidence and ease deflationary pressures.
"While (the Q3 figure) is a marginal decline from the second quarter, it makes the official growth target of 5 percent difficult to achieve if this trend continues to the year-end," said Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, as quoted by the "South China Morning Post."
