China’s Economic Slowdown Raises Concerns Amid Prolonged Property Crisis

China’s economy grew slower than anticipated in Q2 2024, hindered by a prolonged property downturn and job insecurity. Official data showed a 4.7% growth, lower than the 5.1% forecast. The consumer sector also struggled with an 18-month low in retail sales, prompting calls for further stimulus measures from Beijing.

China's economy posted a sluggish 4.7% growth in the second quarter of 2024, according to official data, missing the 5.1% forecast by economists. The slowdown, driven by a protracted property downturn and persistent job insecurity, highlights the challenges facing the world's second-largest economy.

The consumer sector was particularly affected, with retail sales growth reaching its lowest point in 18 months. Deflationary pressures have forced businesses to significantly lower prices on various goods, from cars to food and clothing. Analysts are now speculating that Beijing may need to roll out additional stimulus measures to revive the fragile recovery.

Further complicating matters are plummeting property and stock prices and stagnant wage growth, which are dragging down consumer spending. The crisis in the property sector deepened in June, with new home prices falling at the fastest rate in nine years, further eroding consumer confidence and limiting local governments' revenue from land sales.