China’s Q2 GDP Growth Slows to 4.7% as Third Plenum Begins to Address Economic Challenges

China’s economy grew by 4.7% in the second quarter of 2024, falling short of analysts’ expectations and marking a slowdown from the 5.3% growth recorded in the first quarter. This growth rate is the lowest since early 2023, raising concerns about the country’s economic recovery. The National Bureau of Statistics (NBS) reported that the overall GDP growth for the first half of 2024 was 5%, with the total GDP reaching approximately 61.68 trillion yuan (about 8.65 trillion U.S. dollars).The economic slowdown is attributed to several factors, including a protracted property market downturn, weak consumer spending, and ongoing trade tensions with Western countries. Retail sales, a key indicator of consumption, declined to 2% in June from 3.7% in May, highlighting the challenges in domestic demand.Despite the disappointing figures, there were some positive indicators. Industrial production grew by 5.3% in June, beating expectations, and fixed asset investment rose by 3.9% for the first six months of the year. The unemployment rate remained steady at 5% in June.The release of the economic data coincides with the start of the Third Plenum in Beijing, a key Communist Party meeting where high-ranking officials are discussing ways to revitalize the economy and set long-term economic policies. The four-day meeting is seen as an opportunity for Beijing to spread optimism and give the economy and markets a boost. However, expectations for major stimulus are low, with Chinese Premier Li Qiang previously stating that the government will not use ‘strong medicine’ to boost the economy.Economists suggest that more policy support will be needed to achieve the government’s 5% growth target for 2024. The meeting is expected to focus on deepening reforms, promoting technological independence, and increasing focus on high-tech industries. As China grapples with these economic challenges, the outcomes of the Third Plenum will be closely watched for indications of the country’s future economic direction.

Key points

• China’s Q2 GDP growth slowed to 4.

7%, missing expectations and raising concerns about economic recovery.

• The Third Plenum, a crucial Communist Party meeting to discuss economic policies and reforms, has begun in Beijing.
• Weak consumer demand, property market downturn, and trade tensions continue to challenge China’s economy.
• More policy support may be needed to achieve the government’s 5% growth target for 2024.

Contradictions👾While some sources report the unemployment rate remained steady at 5% in June, others state it decreased by 0.

1 percentage points to 5.

1%.