China economy slows as power cuts, property woes and Covid take toll
GuardianNov 19, 2021
PRC Economy Grew at Slower Rate of 4.7% in Q2 2024
Above: An investor watches the electric board in a stock market in Huaibei, Anhui province, east China on Feb. 29, 2016 Image copyright: Jie Zhao/Contributor/Corbis News via Getty Images
The Facts
China, the world’s second-largest economy, expanded 4.7% in Q2 of 2024 — far slower than economists forecasted and the 5.3% growth in January-March of this year.
Figures released by China’s National Bureau of Statistics on Monday showed the economy missing the 5.1% growth expectation reportedly set by a Reuters poll.
The Spin
Pro-China narrative
Despite recent alarms about China's economy, there's no need for panic. While China's growth has historically been investment-driven, domestic consumption now leads, contributing massively to GDP growth last year. Consumption of goods in China remains higher as a share of GDP than in the US. Additionally, Chinese households have high homeownership rates, too. China's economic outlook remains stable, with proactive measures in place to support continued growth.
Anti-China narrative
China's latest economic statistics should concern the world. Years of erratic policies and strict Communist Party control have weakened domestic demand and slowed growth. The real estate market is failing, local governments are in debt, and unemployment is high. With limited policy options, China leans on increasing industrial capacity, risking greater economic instability. This signals the end of China's "reform and opening" era.