Elon Musk at Tesla’s Shanghai Gigafactory in 2019. STR/AFP via Getty Images
After a dynamic post-pandemic recovery at the start of the year, China’s economic growth started to lose steam in the April-June quarter. Export, once a consistent growth driver, is now struggling. On the domestic side, ongoing real estate market problems dampen investments, while consumer spending weakens as Chinese consumers become more cautious about job, income and economic prospects.
These negative trends impact economic growth forecasts. China’s economy is forecast to expand by 5.0 percent in 2023 and 4.7 percent in 2024, significantly lower than its pre-pandemic levels, which averaged 7.7 percent annually between 2010 and 2019.
The Chinese economy could grow even slower in a more negative scenario. Under Euromonitor International’s China Slowdown scenario, which assumes a deeper slump…
