China's Economic Growth Falls Short of Expectations in Q2

China's economy grew by 4.7% in the second quarter of 2023, falling short of the 5.1% expected by analysts. Policymakers are pushing to boost domestic demand amid a property downturn. The government is targeting 5.0% growth for 2024, a goal that may require more stimulus.

China's economy expanded by 4.7% in the second quarter of 2023, missing analysts' expectations, according to official data released on Monday. Despite efforts by policymakers to boost domestic demand, the growth figure fell short of the 5.1% analysts had anticipated, which itself was a slight dip from the 5.3% growth in the first quarter.

The government has set an ambitious target of around 5.0% economic growth for 2024. Achieving this goal may necessitate additional stimulus measures, analysts say. On a quarter-by-quarter basis, the GDP growth stood at 0.7% for April-June, below the expected 1.1% rise and a significant decrease from the revised 1.5% gain in the previous quarter.

As the property downturn continues and local government debts mount, along with weak private-sector spending, analysts predict that policymakers will need to take further action to support the economy.