China’s Economic Slowdown Raises Global Concerns as Growth Momentum Weakens
China’s Economy Faces Renewed Pressure as Growth Slows and Confidence Erodes
Beijing | TGV News Desk
China’s economy is showing fresh signs of strain, with slowing growth, weak consumer confidence and persistent property sector risks raising concerns about the durability of the country’s recovery. Recent economic indicators suggest that momentum has softened across several key sectors, prompting renewed scrutiny from global markets.
Official data points to subdued retail spending and weaker manufacturing activity, while exports have struggled amid cooling demand from major trading partners. Economists say the slowdown reflects a combination of domestic structural challenges and an increasingly uncertain global environment.
Property sector remains a central challenge
The property market continues to weigh heavily on China’s economic outlook. Several large developers remain under financial stress, and unfinished housing projects have dampened household confidence. Despite policy measures aimed at stabilising the sector, analysts warn that a sustained recovery is unlikely without deeper reforms.
Real estate has long been a key driver of growth in China, and prolonged weakness in the sector risks spilling over into banking, local government finances and consumer sentiment.
Policy response under the spotlight
Beijing has rolled out targeted stimulus measures, including interest rate cuts, support for small businesses and steps to boost lending. However, authorities appear reluctant to deploy large-scale stimulus, citing concerns over rising debt and long-term financial stability.
Analysts say policymakers are walking a fine line between supporting short-term growth and avoiding the build-up of new economic risks.
Global implications
China’s economic performance has far-reaching consequences for the global economy. As a major consumer of commodities and a critical link in global supply chains, slower growth in China could affect emerging markets, multinational firms and global trade flows.
The International Monetary Fund (IMF) has warned that prolonged weakness in China’s economy could act as a drag on global growth at a time when many countries are already facing economic headwinds.
Investor sentiment remains cautious
Financial markets have responded cautiously, with Chinese equities under pressure and foreign investment flows remaining muted. Business surveys suggest companies are delaying expansion plans amid uncertainty over policy direction and demand outlook.
Economists say restoring confidence — both domestically and internationally — will be key to reviving momentum.
What lies ahead?
Most analysts expect Beijing to continue with incremental policy support rather than aggressive stimulus. The trajectory of consumer spending, the health of the property sector and global demand conditions will play a crucial role in shaping China’s economic outlook in the months ahead.
For now, China’s slowdown serves as a reminder of the challenges facing the world’s second-largest economy — and the global ripple effects that may follow.
Sources
https://www.bbc.com/news/world-asia-china
