China's Economic Slowdown Sparks Concerns Amid Structural Challenges

China's economic growth hit a three-year low in the fourth quarter, slowing to 4.5% due to weakening domestic demand. While meeting governmental targets, challenges remain from trade tensions and economic imbalances. Analysts predict further slowdown, emphasizing the need for structural reforms and targeted stimulus measures to support lower-income households.

China's economic growth has decelerated to a three-year low in the fourth quarter, according to data from the National Bureau of Statistics. Growth hit 4.5% from the previous year, a decline from the earlier quarter's 4.8%, spurred by faltering domestic demand and investment.

Economists point to the immediate need for structural reforms. Trade imbalances and shrinking investment rates underline persistent challenges. Analysts foresee a move towards quality over quantity in economic growth, with targeted measures aimed at strengthening lower-income sectors.

Despite meeting its annual growth target, China faces mounting pressure to inject more stimulus to counterbalance external dependencies and domestic vulnerabilities. The economic outlook suggests potential growth may moderate further, leaning towards the low-4% range if significant policy adjustments are not made.