China's Economy Slows to 5.2% Growth Amid Mounting Debt, Deflation, and Demographic Headwinds
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China's economic growth slowed to 5.2% in 2022, failing to convince markets all is well amid debt, deflation, deregulation, and demographic challenges.
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The property sector declined sharply, accounting for just 5.8% of GDP in 2022, while new growth pillars like tech and manufacturing race to compensate.
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Policy support so far has been gradual, not "bazooka-style," struggling to translate into momentum amid weak private investment and foreign investment.
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Local government and developer debt burdens weigh heavily, while falling consumer prices stoke fears of Japanese-style stagnation from weak demand.
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Birth rates hit new lows in 2023 despite scrapped birth limits, as the demographic dividend fades, shrinking the labor force and consumption outlook.