China economy: Beijing must make strong preparations for a period of slow growth

For many Chinese, 2024 will be remembered as a year when they had to come to terms with the prospects of a long period of slow economic growth. While China’s statistics agency is expected to publish data showing around 5 per cent economic growth for the year, that headline number has already lost its relevance to many investors and consumers. The long-term structural restraints on China’s growth prospects, including a shrinking population and housing oversupply, became more visible this year, which prompted many private enterprises to either scale back investments or throw in the towel on their businesses.

For years, Chinese authorities imposed many restrictions on property developers and potential homebuyers to curb speculation. The country’s housing market slump, however, persisted even when the government loosened restrictions or reversed certain policies. The result was that more households no longer see property as an ideal venue to park their wealth.



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