Can China navigate the storm? New economic hurdles may test resilience

While it has successfully weathered economic challenges before, this time is different

China recently introduced an aggressive monetary and fiscal stimulus to revive its flagging economy. Its 2024 growth target of 5 per cent was at risk, as reflected in a loss of momentum, with gross domestic product (GDP) growth slowing to 4.7 per cent in Q2 2024, down from 5.3 per cent in Q1. GDP growth in Q3 was at 4.6 per cent, the print for which came after the announcement of the stimulus package. 

 

The Chinese economy has faced headwinds post-pandemic. However, it had already begun to slow down before the pandemic, with growth decelerating from 10.6 per cent in