China’s gross domestic product grew 5.2 percent last year, but it has yet to shake off real estate weakness.
The 2023 economic data released by China’s National Bureau of Statistics (NBS) showed that China’s Gross Domestic Product (GDP) grew by 5.2%, a growth rate that was 2.2% higher than the 3% growth rate in 2022.
As for the final quarter, the economic growth rate was also the same at 5.2%, which is 0.3% higher than the 4.9% in the 3rd quarter. This time, the figures also exceeded the expected target of 5% growth for the whole year, which China had set at the beginning of the year.
However, Chinese officials and economists agree that the economy is still suffering from weak social expectations and a weak real estate market.
According to Bloomberg, the picture is mixed, with China hitting its official growth target for the year but failing to shake off several of the problems that continue to weigh most on domestic demand and confidence.
Some indicators of house prices and real estate-related spending were disappointing, and a broad range of price indicators suggested that deflation was still lingering.
Gary Wu, senior economist at BNP Paribas, noted that while economic data released by China showed that the consumer and service sectors remained stable, the real estate sector’s challenges seemthe “unending”.
“While the macro picture looks somewhat resilient, it is increasingly a question of whether the glass is half empty or half full for households, businesses and investors going into 2024.”
The MSCI China and Hang Seng index fell for a fourth day as global funds worried about a structural slowdown.
China’s 10-year government bond yields have been near 20-year lows on expectations of further easing from Beijing.
