“I think there are two key headwinds in the Chinese economy that need to be resolved quickly. First, the property sector, which remains the key engine of growth, remains on a downtrend. Second, private sector confidence is still fragile. Put together, these headwinds are also weighing on private consumption as well,” says Ong.
Amidst an economic slowdown largely attributed to a real estate market in turmoil, Chinese premier Li Qiang’s announcement of a 5% gross domestic product (GDP) target for 2024 on Mar 5 has drawn slightly bearish sentiment from watchful observers.
Speaking at the JP Morgan Asia-Pacific (APAC) macro conference in Singapore on the same day, Ong Sin Beng, head of the bank’s EM Asia economics research, echoes a similar view, noting that China’s present complications make achieving its target for the year a challenging one. Rather, his target is “slightly north of 4%.”
