China and U.S. Economic Growth Trends in First Half of 2024
China’s Economy Shows Solid Growth in First Half of 2024, But Challenges Remain
China’s National Bureau of Statistics released data on Monday showing a 5 percent growth in the country’s GDP for the first half of 2024. While this growth rate is impressive compared to other major economies, analysts point out that ongoing issues such as a property crunch and muted domestic demand continue to pose challenges for the world’s second-largest economy.
The second quarter saw a slightly slower growth rate of 4.7 percent compared to the first quarter’s 5.3 percent, indicating a deceleration in pace. Despite this, Chinese economist Chen Fengying remains optimistic, stating that the growth provides a solid foundation for achieving the annual GDP target set by Beijing.
However, skepticism remains among experts, with many questioning the accuracy of China’s growth figures. The ongoing real estate crisis, which began with the default of Evergrande in 2021, and low post-pandemic consumption are cited as factors that could hamper China’s growth prospects.
On the other hand, the U.S. economy is expected to stabilize in the second half of 2024, with Deloitte predicting strong consumer demand. The official updated numbers for the U.S. economy will be published on July 25, with a focus on consumer spending, housing investment, and business investment.
Despite the challenges faced by both China and the U.S., there is optimism for continued growth. The U.S. economy is projected to expand at a slower pace in 2024 before stabilizing in 2025, while China aims to maintain its growth momentum and achieve its annual GDP target.
As global economic dynamics continue to evolve, the performance of these two economic powerhouses will be closely watched by analysts and policymakers alike.
