Global Impact: China’s economic, demographic dilemma for 2024 as problems continue for the world’s second-largest economy

Global Impact is a weekly curated newsletter featuring a news topic originating in China with a significant macro impact for our newsreaders around the world

In this issue, we break down China’s most recent economic and demographic data, and looks ahead to what 2024 might hold for the world’s second-largest economy

Reading Time:8 minutes

Published: 2:00pm, 29 Jan 2024

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China is facing an unprecedented challenge to sustain robust and sustained economic growth this year.

The 5.2 per cent year-on-year growth in 2023, which was reported earlier this month, could create envy for some, including those who are fighting the effects of the protracted Ukraine war and elevated inflation. Electric vehicles in China are also bustling, and domestic tourism is strong.

But sequentially, China’s growth seemed to have lost momentum in the fourth quarter, while price levels were also subdued, adding to deflationary pressure.

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China GDP: Beijing’s long to-do list to boost its economy in 2024

The stock market has been weak since last year, and China’s property market is still in deep state of crisis.

These are the two main investment avenues used by China’s middle class to accumulate wealth, and economists have warned that a big chunk of the group is at risk of falling out of the middle class altogether.