New data raised fresh concerns about the health of China’s economy.
Investment, manufacturing, and consumption figures all fell short of expectations, while a long-running property market downturn appeared to deepen, amplifying worries that the world’s second-biggest economy may miss its annual growth target of 5% this year.
Beyond its trade disputes with the US, China is grappling with huge domestic economic challenges, including the risk of deflation, persistently high unemployment, and a mountain of debt.
Policymakers have so far largely eschewed significant fiscal support, but with ambitious long-term economic growth targets, they may just be holding fire: “It will be a marathon, not a sprint,” ING’s China chief economist wrote.
