The Economist: China’s better economic growth hides reasons to worry
April 16, 2024 China’s economy has shown better-than-expected growth, achieving a 5.3% increase in GDP in the first quarter of 2024, surpassing the government’s target of around 5%. This growth is partly due to China’s strategic emphasis on manufacturing, which grew by 6.7% during the same period, and high-tech manufacturing performed even better. Despite this progress, China faces challenges such as an over-reliance on exports, which grew by 14%, and vulnerabilities in the domestic market, where consumer confidence remains low and the property market continues to struggle. The decline in property prices and related economic sectors has deepened deflationary pressures, raising concerns about the long-term sustainability of this growth. Additionally, the article highlights potential international tensions due to China’s economic strategies, including fears of a protectionist backlash from trading partners like Germany.