China's Economic Slowdown: A Bumpy Road Ahead

China's economy grew at a modest 4.6% in Q3 2024, with the property sector remaining a substantial challenge. Despite policy measures, domestic demand and exports are weak. Analysts express concerns about long-term structural issues, noting the measures may not fully address these challenges.

In Q3 2024, China's economy expanded by a modest 4.6%, despite outpacing some forecasts, marking its slowest pace since early 2023. Consumption and industrial output posted better-than-expected figures, but the staggering property sector continues to be a significant hurdle for Beijing.

In response, Chinese authorities have ramped up policy stimulus since late September, but investors eagerly await more details on the comprehensive plan needed to anchor long-term growth. Concerns linger over domestic demand and export growth, with a recent data survey showing expectations of a 4.8% growth in 2024, below Beijing's targets.

The situation is compounded by continued weakness in the property sector, with new home prices falling and leading companies like EssilorLuxottica missing revenue targets due to subdued consumer demand. Policymakers are leaning towards stimulating consumption, yet analysts suggest more needs to be done to address structural issues, such as overcapacity, high debt, and an aging population.