China's Economic Slowdown Signals Need for Stimulus Measures

China's economy experienced a slowdown in the second quarter, growing only 4.7%, missing the forecast of 5.1%. The downturn in the property market and job insecurity contributed to weak domestic demand. Analysts suggest that Beijing will need to implement more stimulus measures to stabilize growth.

China's economic growth decelerated in Q2, posting a 4.7% increase, which fell short of analysts' 5.1% forecast, according to official data released on Monday. The ongoing property market slump and employment uncertainties have suppressed domestic demand. Experts believe Beijing may need to implement additional stimulus measures.

The world's second-largest economy's Q2 growth was the slowest since Q1 2023 and down from 5.3% in the previous quarter. June's industrial output and retail sales figures indicate weaker-than-expected consumer spending and elevate expectations for more governmental support.

Market reactions were muted, with minor gains in major Chinese indices and a slight weakening of the onshore yuan. Economists emphasize the necessity of fiscal and monetary policies to meet the annual growth target of around 5%, while also addressing structural issues in the property and employment sectors.

(With inputs from agencies.)