China’s GDP grew below forecasts in the fourth quarter – Kommersant
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China’s economy grew by 5.2% year on year in the fourth quarter, reports Reuters. The country’s GDP growth turned out to be the same for the entire year 2023, slightly exceeding the government’s target. The annualized GDP growth rate in the fourth quarter was slightly better than in the third. Then the growth was 4.9%. Analysts polled by Reuters had expected higher growth of 5.3% in the latest quarter. In addition, quarterly growth slowed down noticeably – from 1.5% in the third quarter to 1% at the end of the fourth.
China’s economy, contrary to initial expectations, was unable to recover quickly from the COVID-19 pandemic. This is largely due to the serious crisis in the real estate market, which is one of the key sectors of the PRC economy. Thus, in December, prices for new housing fell by 0.45% on average compared to November, which was the strongest monthly price drop since February 2015.
According to recent polls, economists expect China’s GDP growth to be 4.6% in 2024. At the same time, S&P Global Ratings noted that a scenario is possible in which GDP grows by only 2.9%. The real GDP growth rate will depend primarily on the state of the real estate sector, experts noted.
Read about why trade with the Russian Federation does not compensate China for losses on the global market in the Kommersant article. “Turn with the East”.
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