China's Economy Faces Slowdown, Future Stimulus Expected

China's economy saw a slowdown in the second quarter, growing only 4.7% year-on-year, missing analysts' forecast. The protracted property downturn and job insecurity continue to weigh on domestic demand. Economists suggest further stimulus may be needed to achieve the government's 5% growth target for the year.

China's economy experienced a downturn in the second quarter, data revealed on Monday, prompting analysts to predict additional stimulus measures from Beijing. The country's GDP grew by 4.7% from April to June, falling short of the 5.1% forecast by analysts and marking its slowest growth since early 2023.

This decline from the previous quarter's 5.3% growth can be attributed to a longstanding property market slump and widespread job insecurity, which have dampened domestic consumer demand. As the world's second-largest economy struggles to regain its footing post-COVID-19, experts believe that more support, particularly in the form of monetary policy, is essential.

Widespread concerns persist about the feasibility of meeting the 5% annual growth target, with market analysts placing high hopes on the upcoming third plenum for potential stimulus announcements. However, many caution against heightened expectations given past disappointments.

(With inputs from agencies.)