By the end of this year, China’s economic growth rate will slow to 5% from the previously expected 5.1%. In this respect he is writing Bloomberg cited analysts.
Economists have changed their forecasts due to ongoing problems in the real estate sector and rising debt in China’s corporate sector despite government support measures.
“All these factors can lead the economy to a lower trajectory (growth – socialbites.ca),” experts concluded.
However, most analysts believe that the Chinese government can achieve its gross domestic product (GDP) growth target in the second half of this year. The development of this scenario will be facilitated by the slowdown in the decline in exports, the stable demand of Chinese households for housing loans and the gradual recovery of business activities in the manufacturing sector.
According to economists, the further growth rate of the PRC economy will largely depend on the situation in the local real estate market. They described the debt crisis in this sector as China’s biggest problem. Li Daokui, a former adviser to the management of the People’s Bank of China, suggested that the real estate market could take up to a year to recover.
He Keng, former deputy head of China’s statistics department, September 24 statedHe said China’s total population of 1.4 billion is not enough to fill all the vacant apartments in the country. The Chinese real estate market has been in crisis since 2021, when developer Evergrande went bankrupt. At the end of August, unsold housing area in China reached 648 million square meters. metre.
Raksha, formerly an economist named minus the Chinese monetary system.