China’s economy grew at a slower rate of 4.7 percent in the last quarter, below expectations. However, the government highlighted improvements in factory output, income, and investment.
This year’s progress has been challenging due to weak global economic growth, inflation, and domestic demand issues. Economists attribute the slower growth to weak consumer demand and reduced government spending.
Despite challenges, recent data suggests some stability in growth, with increased exports and factory output in June. However, retail sales remain below expectations, indicating ongoing struggles in consumer spending.
To address the economic challenges, the Communist Party’s Central Committee is meeting to set policies for sustainable growth. Experts are watching for immediate measures to counter the property market downturn and drive post-COVID-19 recovery.
While exports have increased, rising tariffs on Chinese imports present additional obstacles for manufacturers. The focus remains on stimulating consumer demand to support long-term growth.