China’s economic growth is facing challenges, but recent data shows recovery. Real estate crisis is a concern, but financial risks are contained. Alternative growth strategies are being pursued.
China’s Economic Recovery
China’s ‘China miracle’ ended due to real estate crisis, weak consumption, and export demand, but recent data shows a recovery gaining momentum, with GDP and production growth. The real estate sector’s impact on the financial system is expected to be contained, and China is working on stabilizing it with supply and demand side policies.
Financial Risks Containment and Future Strategies
The real estate crisis has raised concerns, but risks are expected to be contained. Limited bank financing for developers, government monitoring of real estate prices, and low mortgage default rates contribute to containing the risks. To stabilize the real estate sector, China is implementing strategies like selective credit allocation and incentives for home buyers while focusing on alternative growth engines for sustainable growth.