KSTR - China's Q2 GDP Slowed By More Than Expected In New Challenge To Achieving Growth Target
2024-07-15 07:59:00 ET
Summary
- China's GDP growth in 2Q24 fell to 4.7% YoY, below expectations, with the property sector and consumption continuing to drag on growth.
- Property prices continued to decline in June, but signs of stabilization in key cities indicate support measures are taking effect.
- Investment remained lackluster due to weak private sector and real estate investment, while industrial production remained a key driver for growth.
By Lynn Song
China's GDP slowed by more than expected in the second quarter
China’s 2Q24 GDP growth fell to 4.7% YoY, coming in noticeably softer than forecasts for 5.1% YoY. This brought the year-to-date GDP growth down to 5.0% YoY for the first half of the year, which keeps China still on pace to achieve its 5% GDP growth target for now.
Through 1H24, the secondary industry has been the primary driver of growth, up 5.8% YoY, as manufacturing has largely outperformed expectations in the year to date amid the strength of the EV sector and a pivot toward hi-tech manufacturing and technological self-sufficiency. The tertiary industry growth slowed to 4.6% YoY from 5.8% YoY in 2023, as weak consumption momentum impacted services demand....
China's Q2 GDP Slowed By More Than Expected In New Challenge To Achieving Growth Target