China's Economic Shift: Navigating a Slowdown

China's economic growth in the fourth quarter slowed to a three-year low of 4.5%, reflecting subdued domestic demand despite meeting annual targets. While exports and manufacturing bolstered the economy, structural challenges and weak property investment points to potential future vulnerabilities.

In the latest economic report, China's growth rate in the fourth quarter plummeted to a three-year low of 4.5%, according to the National Bureau of Statistics. Analysts note a significant deceleration from the third quarter, highlighting the country's ongoing challenge with domestic demand and investment.

Commentators like Kyle Rodda and Shane Oliver pointed out the subdued retail sales and negative fixed asset investment trends as indicators of fading stimulus effects. The declining momentum suggests policymakers might need to employ additional measures to stabilize growth near or just below 5%.

As the global landscape becomes increasingly protectionist, China's reliance on exports, particularly in manufacturing, poses both potential and peril. While foreign trade buoyed the economy, experts agree that stronger consumption policies might be crucial to navigating future uncertainties.