China's economic growth slows amid stimulus
China's economy grew by 4.6% year-on-year in the third quarter of 2024, marking its slowest pace in 18 months and falling short of the government's full-year target of 5%, reports the Financial Times.
The slowdown is attributed to weak consumer spending and a struggling property sector, prompting Beijing to roll out substantial monetary stimulus.
Despite the broader downturn, industrial production rose by 5.4% year-on-year in September, up from 4.5% in August. Retail sales also increased by 3.2%, exceeding analysts' expectations of 2.5%. While these figures suggest signs of recovery, economists warn that further fiscal support is needed to drive household consumption and private investment.
Beijing’s stimulus measures, including initiatives to encourage non-bank financial institutions to invest in the stock market, have driven the CSI 300 index up by 3.6%. However, deeper structural issues, such as deflation and low confidence in government policies, continue to pose significant challenges.
