China's Economy Faces Slowdown: Housing Woes and Consumer Confidence Hit Growth

China's economic growth likely slowed in the second quarter, impacted by a property downturn and job insecurity. Data expected on Monday could show the economy grew by 5.1% year-on-year, a decline from the previous quarter. Beijing aims for economic growth of around 5.0% for 2024, potentially requiring more stimulus measures.

China's economy likely saw a slowdown in the second quarter due to a prolonged property downturn and job insecurity, affecting domestic demand and raising expectations that Beijing will need to introduce more stimulus measures.

According to a Reuters poll, data to be released on Monday is expected to show the world's second-largest economy grew by 5.1% year-on-year in April-June, down from 5.3% in the previous three months, marking the slowest growth since Q3 of 2023. This comes as Beijing prepares for a crucial third plenum leadership meeting, where balancing growth and reducing debt will be critical focal points.

Economists forecast a 1.1% quarterly growth rate for Q2, lower than the 1.6% growth in Q1. To counteract weak domestic demand and a property crisis, China has increased infrastructure investment and funding for high-tech manufacturing. Analysts suggest that the government may need to implement more property-supportive measures after an upcoming Politburo meeting.