‘All is not well’ in China’s economy, Rhodium Group report warns, slamming Beijing’s lack of structural reform
- After GDP growth surpassed expectations in 2023, US-based research firm says slower annual growth in range of 3-4 per cent ‘is here to stay’ for China
- Report says China made ‘meaningful’ progress in attracting foreign investment but failed to address structural problems that brought about mounting local-government debt
The annual growth of China’s economy could slow to just 3 to 4 per cent in the coming years unless the nation addresses structural problems, warns a fault-finding report by the US-based Rhodium Group that meanwhile viewed the beleaguered property sector in a more positive light, expecting it to be relatively stable this year.
China’s recovery from the coronavirus pandemic was largely uneven in 2023, and its economic performance was particularly weighed down by some underlying problems resulting from years of large-scale credit and investment expansions.
Moreover, China is facing growing export controls in some sectors and weak domestic demand that have raised questions over its position as the world’s leading manufacturing destination for foreign firms.
“Policymakers did next to nothing to tackle real structural problems,” the US-based research firm said in the report released on Monday, adding that “structural problems require structural reforms”.
Last year, China’s economy grew by a higher-than-expected 5.2 per cent, and Beijing is again expected to set a gross domestic product (GDP) growth target of around 5 per cent for 2024.