China Beige Book's Qazi: There is not an obvious growth driver in China for the next several years

28 Dec 2023 · over 2 years ago

China's economic recovery is showing signs of weakening and losing steam.
Sales in the Chinese real estate market have been declining, with property prices at their lowest levels.
Policy support and lower mortgage rates have been implemented to stabilize the sector, but a full recovery is not expected.
China is facing challenges in balancing the need to stabilize the real estate market without reinflating the property bubble.
Chinese policymakers are unlikely to provide extensive support, and real estate will likely no longer be a significant driver of economic growth.
In the absence of real estate, there is no clear growth driver for China in the coming years.
Manufacturing and electric vehicle/auto sales may still provide some support to the economy, but overall growth will continue to slow.