In the first quarter of 2024, China’s economy experienced a 5.3% growth in GDP, exceeding expectations of a 4.6% growth rate. However, challenges in the property sector continue to impact the economy, with retail sales growth falling to 3.1% and property investment decreasing by 9.5%. The ongoing property market crisis has had a significant impact on China’s economy, with the sector accounting for around 20% of its GDP. In March, new home prices experienced the fastest decline in over eight years, and high-profile property developers like Evergrande faced liquidation orders and winding-up petitions in Hong Kong. Despite these challenges, Fitch recently downgraded its outlook for China, citing increasing financial risks and economic challenges. However, China’s leaders reported a 5.2% growth rate for 2023 at their annual gathering in March, maintaining the country’s historically high growth rates with an annual GDP growth average of close to 10% over several decades.
China’s Economy Defies Expectations in 2024 with 5.3% Growth Rate, but Property Sector Remains a Challenge
