China’s economic growth slowed to 4.6% in the third quarter of 2024, the weakest growth since early 2023 and slightly down from the 4.7% growth in the second quarter. This slowdown is primarily due to persistent difficulties in the real estate sector, which continues to be a significant obstacle to the country’s economic stability.
In response to this slump, Chinese authorities significantly strengthened economic stimulus measures starting in late September. The goal is to boost the economy and achieve the government’s growth target for this year (about 5%).
Following the release of third-quarter GDP data, multiple brokerage firms have revised upward their forecasts for China’s economic growth in 2024. JPMorgan raised its forecast to 4.8% from 4.6%. Similarly, Nomura revised its forecast from 4.6% to 4.7%. UBS (SIX:) Global Research also raised its forecast to 4.8% from 4.6%.
These revised estimates reflect cautious optimism about China’s economic trajectory next year, despite the challenges currently facing the Asian giant.
Reuters contributed to this article.
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