Source: Bloomberg
Due to industrial added value and total retail sales of social consumer goods exceeding expectations, the Chinese economy loses its kinetic energy in August, indicating that the risk of government's annual growth goals is increasing.
China National Bureau of Statistics announced on Saturday that industrial added value increased by 4.5%year -on -year, lower than 5.1%in July, and below the expected medium value by 4.7%.This is the fourth consecutive month of industrial added value to slow down, the longest slowdown since September 2021.
The total retail sales of social consumer goods increased by 2.1%, the growth rate was lower than 2.7%in the previous month, and it was also lower than the 2.5%of the forecast of economists.
The continuous deceleration of industrial added value shows that even the more tough parts in the Chinese economy are losing power.When confidence is frustrated, the domestic demand is difficult to rebound, and this weak trend further makes the prospects of economic growth dim.
"Data in August basically excluded the possibility of achieving 5%of the official growth goals in 2024, unless the Supreme Leadership is willing to launch a rocket artillery stimulus plan," Raymond Yeung, chief economist of Greater China, Australia and New Bank.
These data further proves that the world's second largest economy is losing momentum, prompting bank analysts such as JP Morgan Chase to reduce expectations.Most global banks are currently expected to grow below 5%this year.
Ruisui downgraded China's GDP growth forecast from 4.8%to 4.7%on Friday. The reasons for citing was the poor implementation of Chinese officials.After China's economic growth has fallen to the lowest level since the five quarters, economists have called on the Chinese government to introduce more stimulating measures.
The National Bureau of Statistics said in a statement that it will use reform as the driving force to promote stable growth, regulate structure, and prevent risks, focus on promoting high -quality development, accelerate the implementation of various reform tasks and policies and measures, and consolidate the development of the economy to rise to a good foundation.
The National Bureau of Statistics said that it is also necessary to see that the adverse impact of the current external environment changes has increased, and the effective demand in China is still insufficient. The economic continuous recovery is still facing many difficulties.
National President Xi Jinping emphasized on Thursday that all regions and departments must conscientiously implement the party's central government's deployment and major measures on economic work, grasp the economic work of the end of the third and fourth quarters, and strive to complete the annual economic and social development goalsTask.
The next day, after the credit data shows that the private industry is still confident, the Central Bank of China has hinted that it will increase its efforts to fight against shrinkage, while preparing more measures to stimulate the economy.
According to data from the National Bureau of Statistics, the investment in fixed assets from January to August increased by 3.4%year-on-year, and the growth rate was less than 3.6%in January-July.
Real estate development investment continued to shrink, down 10.2%.
