China's Economic Slowdown Raises Stimulus Expectations

China's economy slowed in Q2, with a GDP growth of 4.7%, below the 5.1% forecast. A prolonged property downturn and job insecurity have dampened domestic demand, prompting expectations for further stimulus. Despite hitting a 5% YTD growth, achieving the 5% year-end target remains challenging without additional policy support.

China's economy exhibited slower growth in the second quarter, expanding by 4.7%, which fell short of the 5.1% forecast, official data revealed on Monday. The protracted property downturn and job insecurity have impacted domestic demand, spurring expectations for Beijing to introduce further stimulus measures.

As the world's second-largest economy struggles to regain momentum, analysts point out that the current growth rate is the slowest since the first quarter of 2023. The second quarter's 4.7% rise also marked a decline from the previous quarter's 5.3% expansion, heightening concerns about China's economic recovery this year.

Market experts, including Matt Simpson of City Index in Brisbane, suggest that while the numbers fell short of expectations, growth remains on track to meet Beijing's annual target of approximately 5%. However, the persistent declines in property investments and weak consumer confidence continue to pose significant challenges, calling for further policy intervention to ensure steady economic development.

(With inputs from agencies.)