Weak Q2 Performance Underscores China’s Enduring Consumption and Property Market Struggles

Key Takeaways

• GDP growth in Q2 fell short of expectations, raising concerns about achieving the 2024 overall growth target of 5 percent.
• The data reveals uneven growth, with strong industrial output failing to offset the effects of weak domestic demand and a depressed property sector.
• As China holds the Third Plenum in Beijing, it faces the dual challenge of stimulating consumer demand and reducing debt.