China Barely Meets Lowest Growth Target in Decades As Economic Headwinds Persist

• China narrowly beat its 2022 growth target of 5%, one of its lowest in decades, as the economy faces headwinds like the property crisis, weak exports, and private sector crackdowns • Falling consumer prices over the last 4 months signal growing deflationary risks that could further dampen demand • Weak household consumption, excess housing supply, and over-investment in infrastructure are structural drags on growth
• Beijing continues prioritizing investment in strategic high-tech industries over boosting social spending to drive consumption • Analysts say China must accelerate reforms to rebalance its economy towards domestic consumption and reduce reliance on exports