China economy slowdown deepens, official figures show

Published On Oct 17, 2024, 10:08 PM

China's economic growth has slowed down, with GDP increasing by only 4.6% in the third quarter, falling short of the government's 5% target. This marks the second consecutive quarter where growth has not met expectations, prompting the Chinese government to announce several measures to stimulate the economy. These measures include significant interest rate cuts, mortgage rate reductions, and initiatives to encourage banks to increase lending amidst a struggling property market and low consumer confidence.

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Stock Forecasts

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Negative

The lagging economic growth in China may lead to increased volatility in markets related to Chinese exports and commodities. Additionally, sectors heavily dependent on Chinese consumer spending may face challenges. Investors in sectors like industrials and materials may want to reevaluate exposure, as domestic demand is likely weaker than anticipated.

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