According to Reuters, China’s economy is estimated to have grown by 4.6% in the first quarter compared to the previous year, marking its slowest pace of growth in twelve months. Despite tentative signs of stabilization, this modest expansion rate places continued pressure on policymakers to implement additional stimulus measures.
Looking ahead to 2024, projections indicate that the gross domestic product (GDP) of the world’s second-largest economy will maintain a subdued trajectory, with a projected year-on-year growth rate of 4.6%. However, this falls short of the official target of approximately 5.0%.
Analysts foresee an even slower growth rate of 4.4% for 2025. The first-quarter estimate of 4.6% contrasts with the 5.2% growth recorded in the preceding three months and represents the lowest rate since the January-March quarter of 2023. Despite encouraging data on factory output, retail sales, and exports in January and February, policymakers confront the challenge of bolstering confidence and stimulating demand in the forthcoming quarters.
