Growth is set to slow as Beijing’s overcapacity fight takes a toll on investment, while years-long efforts are yet to reinflate property prices. Rate cuts to prop up the rebounding stock market look likely. But heading off deflation requires creating sustainable consumer demand.
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CONTEXT NEWS
China’s Industrial output grew 5.7% year-on-year in July, National Bureau of Statistics announced on August 15. This is the lowest reading since November 2024, and compared with a 6.8% rise in June. It missed forecasts for a 5.9% increase in a Reuters poll.
In a research note published on August 15, Morgan Stanley economists expect the China’s economic growth to slow down to 4.5% in the third quarter, comparing with a 5.3% growth in the first six months of 2025.
