China's Economic Struggles: Slow Growth and Urgent Need for Stimulus

China's economy faces a challenging 2024 after disappointing July indicators. Weaker domestic demand and export slowdowns suggest the need for further stimulus measures. Despite setting a 5% growth target, the outlook remains uncertain with new bank loans at a 15-year low and property market struggles amplifying concerns.

In a troubling sign for 2024, a series of dismal July indicators have dampened expectations for China's economic performance, highlighting the necessity for additional stimulus measures. The world's second-largest economy has not rebounded as expected post-pandemic, leading officials to call for stronger growth initiatives.

The Chinese government aims for a 5% growth rate this year, but recent data points to a challenging second half. New bank loans in July hit a 15-year low, and export growth and factory activity have significantly slowed, underscoring weak domestic demand.

The second-quarter growth rate also fell short, expanding by just 4.7% year-over-year. With retail sales and industrial output showing minimal improvement, and new home prices in decline, economists predict prolonged sluggishness. Further interest rate cuts are anticipated, yet unclear domestic demand continues to hinder economic recovery.

(With inputs from agencies.)