China’s road to economic recovery set to remain bumpy without policy shift after investment drags in November
- Real estate investment fell by 9.4 per cent in the first 11 months of 2023 compared with a year earlier, while private investment remained in contraction
- China’s retail sales rose by over 10 per cent in November, year on year, but Beijing still faces lots of challenges to manage an uneven economic recovery
China’s economic recovery remained bumpy in November, prompting increased calls from analysts for Beijing to enact supportive policies to assist property developers and shore up market confidence.
Industrial output grew at a faster pace last month compared with October, but a persistent decline in property and private investment, and fragile consumer confidence, underscored the ongoing challenges for China.
Private investment, meanwhile, dropped by 0.5 per cent in the first 11 months of the year, compared to a year earlier, remaining in negative growth territory for the seventh consecutive month.
China’s recovery is ongoing. But it still looks narrowly based and vulnerable to any further worsening in the real estate sector
The weakness in both sectors largely offset fixed-asset investment growth, which expanded by 2.9 in the first 11 months, year on year, unchanged from the expansion seen in the January-October period.