China will bottom up in coming 2 years as the government needs to stimulate the economy in ensuring growth and stability.
Below is just few key points supporting optimism:
Government stimulus:
Chinese authorities are expected to continue implementing policies to stimulate domestic demand, including measures to boost consumer spending, which could offset the slowdown in the real estate sector. They have learnt their lseason from the previous experience.
Focus in export despite tariffs from US
China's manufacturing sector is currently experiencing strong export performance due to high global demand, providing a significant economic boost. The support from govemrnent is far from over and may implement key monetary to support the local industries and manufacturing.
Bottom Up for Property market
After a period of decline, the property market is showing signs of stabilization, which could positively impact economic activity. The Covid has impacted greatly the property market and real demand and supply will kick into the market which is positive for the people.
Focus on high-quality growth:
The "Made in China 2025" initiative aims to promote innovation and development in key industries like technology and green energy, which could drive long-term economic growth.
However, potential concerns remain:
Trade tensions with the US:
Ongoing trade disputes with the United States could continue to create uncertainty and impact economic growth.
Debt levels:
High levels of debt in the Chinese economy, especially within the local government sector, could pose a risk to financial stability.
Demographic challenges:
China's aging population could put pressure on economic growth in the long run.
Overall, while there are reasons to be optimistic about China's economic outlook in 2025, the success will depend on the government's ability to address structural challenges and navigate potential external risks effectively.
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