China's Economic Roadmap: Navigating Challenges and Stimulus Strategies

China's economy experienced its slowest growth rate since early 2023 in the third quarter, with a struggling property sector posing significant challenges despite increased policy stimulus. Authorities aim to achieve a 5% growth target through further policy measures and central bank interventions, although long-term challenges remain.

China's economy recorded its slowest growth since early 2023 during the third quarter, as challenges in the property sector continue to overshadow economic progress. While consumption and factory output exceeded forecasts last month, Beijing faces pressure to revitalize growth through policy stimulus.

The world's second-largest economy grew at 4.6% from July to September, slightly above the 4.5% predicted in a Reuters poll. Despite this marginal improvement, analysts like Bruce Pang from JLL note that China's performance aligns with market expectations due to weak domestic demand and a sluggish housing market.

Authorities remain confident in achieving a 5% annual growth target, citing further policy support and reduced bank reserve requirements. However, structural issues such as overcapacity and high debt levels persist, raising questions about the effectiveness of current stimulus strategies.

(With inputs from agencies.)