China’s ‘time running out’ to meet growth target as August figures falter

As China’s August economic metrics largely disappointed, analysts said the window to meet its annual growth target is closing fast

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Retail sales and other economic metrics have continued to fall below expectations in China as numerous headwinds buffet the country’s growth. Photo: EPA-EFE

Luna Sunin BeijingandMia Nulimaimaitiin Barcelona

Published: 10:05am, 14 Sep 2024Updated: 12:15pm, 16 Sep 2024

As China’s consumption, industrial activity and investment continued to soften in August, economists warned “time is running out” for significant stimulus to shore up momentum and ensure the country achieves its growth target for the year.

The call for action came as exports – one of few bright spots in recent economic data – is facing new hurdles in the form of increased tariffs from the US and its Western allies.

With the across-the-board weakening reported by the National Bureau of Statistics (NBS) on Saturday – combined with a slump in the property market, low investor confidence and mountains of debt held by local governments – the world’s second-largest economy continues to have a panoply of problems to grapple with.

Retail sales, a key gauge of consumption, rose by 2.1 per cent year on year last month after 2.7 per cent growth was observed in July, bureau data showed. The reading fell short of the 2.68 per cent projected by Chinese financial data provider Wind.

Property investment – a figure that has sagged as uncertainties in the real estate market multiply – dropped by 10.2 per cent year on year in the first eight months of the year, identical to the fall recorded in the period from January to July.

China’s overall fixed-asset investment, which includes major items like infrastructure construction, manufacturing and property spending, rose by 3.4 per cent in the first eight months of the year, compared to a seven-month rise of 3.6 per cent.