China's Economic Struggles and the Property Market Challenge

China's economy grew at 4.6% in the third quarter of 2024, falling behind the government's target of around 5%, amid a faltering property sector and weak domestic demand. Despite increased stimulus efforts, the growth forecast remains conservative as the country grapples with deflationary risks and trade challenges.

China's economy continues to navigate turbulent waters, with growth climbing to only 4.6% in the third quarter of 2024 against the government's goal of reaching an approximate 5% rise. The figures reflect the lowest rate since early 2023.

Despite optimistic industrial output and retail sales surpassing expectations for September, the property sector's downturn poses significant issues, leaving markets calling for further stimulus measures. Chief Economist at JLL, Bruce Pang, noted that these figures align with market forecasts amid weak domestic demand.

The government has started deploying substantial stimulus strategies to meet its 2024 growth target. Yet, recent data indicate deflationary pressures as export prospects wane. Authorities have signaled additional treasury bond issuance as part of a broader fiscal expansion to invigorate growth.

(With inputs from agencies.)