China Faces Economic Headwinds as Growth Forecasts Dip Below 5%
-
China's economy is slowing, and leaders are seeking ways to revive growth as the country faces demographic, geopolitical, and real estate headwinds.
-
Hopes for a strong recovery after COVID controls ended have not materialized, and economic growth is expected to slow below 5% this year.
-
The property market is in crisis after a crackdown on excess borrowing, with plunging home sales and multiple developer defaults.
-
Premier Li Qiang is expected to announce around 5% growth target for 2023 when the National People's Congress convenes, but many economists forecast slower expansion.
-
To boost growth, China may increase government spending, further cut interest rates, relax property market curbs, and address long-standing imbalances like weak consumption.