China’s economy is falling into hell, worst condition in 18 months

China Economic Crisis: China’s economy on Friday, October 18 recorded its slowest growth in the last one and a half years. Beijing is still trying to revive its economy amid weak consumer spending and slowdown in the property sector.

Beijing’s National Bureau of Statistics (NBS) announced on Friday, October 18 that China’s economy grew 4.6% year on year in the third quarter. This is slightly lower than the previous three-month rate of 4.7% and the slowest growth since the beginning of 2023, when China was emerging from the COVID-19 lockdown. However, this is slightly better than the estimate of 4.5%.

Crisis on consumer spending

China’s economic growth has also been affected by the slowdown in household spending and the poor condition of the property sector. The possibility of fall in consumer prices has increased, which may increase the risk of inflation crisis in the country. September’s consumer price index (CPI) did not meet expectations, pointing to slowing demand.

In recent weeks, authorities have taken several steps to revive the economy, including cutting interest rates and easing restrictions on home buying. However, investors are still waiting for a big financial stimulus package from Beijing.

“We are still waiting for more clarity,” Zhiwei Zhang, chief economist at Pinpoint Asset Management, told news agency AFP. “We may have to wait for all the details until November, because the results of the US elections can also influence Chinese economic policy.” .”

Crisis in property sector

China’s property sector has long been the reason for the country’s economic growth. But now the situation is such that this sector is drowned in debt. According to AFP, authorities recently announced that more than US$500 billion of credit will be extended to finance unfinished housing projects and plans to renovate one million homes.

Investors waiting for things to change

Although Beijing says it is confident of achieving its 5 percent annual growth target, economists believe more direct economic stimulus is needed to reactivate activity and restore business confidence. Can go. Investors want more analysis about changes in China’s economic model to stabilize long-term growth.

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