Part 2/7:
Recent reports indicate that China has laid claim to a 5% GDP growth target. However, skepticism looms over this figure, as many analysts argue that it stems more from government rhetoric than from actual economic performance. The reality reveals an economy descending into what appears to be an early-stage recession, compounded by deflation and a historic contraction in property investment.
Despite efforts to stimulate growth through governmental policies, consumption growth remains below pre-pandemic levels, and property values — a cornerstone of the economy — continue to decline. With a significant portion of the populace investing in properties merely for appreciation, this atmosphere of deflation discourages purchases of depreciating assets.