China's economy has reported a growth rate of 4.6 per cent for the third quarter of 2024, a figure that falls short of the government's ambitious target of approximately 5 per cent. This latest data, released today, indicates a slight decline from the previous quarter's growth of 4.7 per cent, raising concerns about the sustainability of recovery efforts in the world's second-largest economy as detailed in a report by ABC News.<o:p></o:p>

Whereas in a statement, the National Bureau of Statistics said that the economy was “generally stable with steady progress” even in the face of a “complicated and severe external environment” and complicated domestic economic development.<o:p></o:p>

Economic analysts have noted that despite the lifting of COVID-19 restrictions at the end of 2022, consumer confidence remains low. The sluggish growth is largely attributed to ongoing issues within the real estate market, which continues to act as a significant drag on overall economic performance. The property sector has been struggling with high debt levels and declining sales, leading to a cautious approach among consumers and investors alike.<o:p></o:p>

China's growth rate in the first three quarters of the year was 4.8 per cent. On a quarterly basis, the economy expanded 0.9 per cent&nbsp;in the quarter that ended in September, up from 0.7 per cent&nbsp;growth in the previous quarter.<o:p></o:p>

For the first three quarters, China's factory output rose 5.8 per cent, while retail sales expanded 3.3 per cent&nbsp;compared to the same period last year. However, property investment sank 10.1 per cent&nbsp;and the value of new home sales plunged 22.7 per cent, underscoring weakness in the housing sector.<o:p></o:p>

In response to these challenges, Chinese policymakers have recently implemented several measures aimed at stimulating economic activity. These initiatives include reducing mortgage rates for existing homeowners and allowing banks to increase lending by lowering reserve requirements. However, experts argue that these steps may not be sufficient to achieve a substantial economic boost without more aggressive stimulus plans.<o:p></o:p>

The latest growth figures have prompted discussions among analysts regarding the need for further intervention from Beijing. Many believe that a more comprehensive approach is necessary to reignite consumer demand and facilitate recovery in the property market. As it stands, the government's current measures appear to be insufficient in addressing the fundamental&nbsp;issues affecting economic growth.<o:p></o:p>

Looking ahead, economists are closely monitoring how these developments will impact China's long-term economic trajectory. The government’s ability to implement effective policies will be crucial in determining whether it can meet its growth targets for the remainder of 2024 and beyond.<o:p></o:p>

Hence, while China’s economy has shown some resilience with a growth rate of 4.6 per cent in Q3 2024, it remains clear that significant challenges lie ahead. The combination of low consumer confidence and a struggling real estate sector underlines&nbsp;the need for more robust policy measures to ensure sustainable economic recovery in the coming months.<o:p></o:p>

China's economy has reported a growth rate of 4.6 per cent for the third quarter of 2024, a figure that falls short of the government's ambitious target of approximately 5 per cent.

China's economy has reported a growth rate of 4.6 per cent for the third quarter of 2024, a figure that falls short of the government's ambitious target of approximately 5 per cent. This latest data, released today, indicates a slight decline from the previous quarter's growth of 4.7 per cent, raising concerns about the sustainability of recovery efforts in the world's second-largest economy as detailed in a report by ABC News. Whereas in a statement, the National Bureau of Statistics said that the economy was “generally stable with steady progress” even in the face of a “complicated and severe external environment” and complicated domestic economic development. Economic analysts have noted that despite the lifting of COVID-19 restrictions at the end of 2022, consumer confidence remains low. The sluggish growth is largely attributed to ongoing issues within the real estate market, which continues to act as a significant drag on overall economic performance. The property sector has been struggling with high debt levels and declining sales, leading to a cautious approach among consumers and investors alike. China's growth rate in the first three quarters of the year was 4.8 per cent. On a quarterly basis, the economy expanded 0.9 per cent in the quarter that ended in September, up from 0.7 per cent growth in the previous quarter. For the first three quarters, China's factory output rose 5.8 per cent, while retail sales expanded 3.3 per cent compared to the same period last year. However, property investment sank 10.1 per cent and the value of new home sales plunged 22.7 per cent, underscoring weakness in the housing sector. In response to these challenges, Chinese policymakers have recently implemented several measures aimed at stimulating economic activity. These initiatives include reducing mortgage rates for existing homeowners and allowing banks to increase lending by lowering reserve requirements. However, experts argue that these steps may not be sufficient to achieve a substantial economic boost without more aggressive stimulus plans. The latest growth figures have prompted discussions among analysts regarding the need for further intervention from Beijing. Many believe that a more comprehensive approach is necessary to reignite consumer demand and facilitate recovery in the property market. As it stands, the government's current measures appear to be insufficient in addressing the fundamental issues affecting economic growth. Looking ahead, economists are closely monitoring how these developments will impact China's long-term economic trajectory. The government’s ability to implement effective policies will be crucial in determining whether it can meet its growth targets for the remainder of 2024 and beyond. Hence, while China’s economy has shown some resilience with a growth rate of 4.6 per cent in Q3 2024, it remains clear that significant challenges lie ahead. The combination of low consumer confidence and a struggling real estate sector underlines the need for more robust policy measures to ensure sustainable economic recovery in the coming months.

China's economy grows at 4.6%, falling short of ambitious targets

China is undergoing massive reforms, and the current state has been described by analysts as adjustments that are slow and painful. With this experience happening very rapidly in the last few years, there has been so much importance in how the country deals with the challenges. Analysts opine that the architecture of the economic structure of the nation is quite robust; however, it is facing pressures from both domestic and international fronts according to CNBC report.

Eswar Prasad, professor of international trade and economics at Cornell University, sounded one more alarm that Beijing's economic outlook for the second half of this year is now "flashing red, or pretty close to red".

Reports from top economists state that the growth in the economy of China has been controlled. The statistics indicate that overall economic strength has declined. Overall growth has been too slow, and this makes a scary scenario for the investors at large. Property market worries clearly show that the economic growth has been erratic. It did surpass their better times, yet there have been calls for reforms, which cut deeper into the fact of why this juncture had to come.

Chinese people are getting used to a new reality<o:p></o:p>

As the analyst pointed out it is not just about numbers; it's actually about the real-life impact on Chinese citizens who are adjusting to new economic realities. Hence, what we are witnessing is truly a dramatic shift and different than past phenomena. That's because of several factors, including a shift in global supply chains, coupled with rising energy prices and evolving consumer behavior.

With the US Fed widely expected to cut rates in their upcoming meeting, Helen Qiao, chief Greater China economist and head of Asia economics at the Bank of America, told CNBC’s “Street Signs Asia” that the People’s Bank of China will likely not be cutting as much as the US Fed.<o:p></o:p>

Still, the slowing of economic growth warrants more easing, Qiao said, adding that job security and income growth are the main drivers for consumer spending, and right now, both are lacking in China.

Those companies that were able to survive the storms in the past are thinking through their strategies to find their way through these widespread changes, proving that resilience and innovation would be the necessary tools for survival in this kind of business landscape.

All eyes are on China's economic shift to see how that could send waves into the global market and raise questions about the amount of policy adjustment to stabilize it forward. Analysts insist that if given a chance, other markets will experience negative spillovers if left unchecked. Such options should be looked at to make support possible during this trying time.

Bank of America had lowered their forecast for China’s 2024 GDP growth to 4.8 per cent, below the government’s target of 5 per cent. Citigroup also lowered their projection to 4.7 per cent following the data released over the weekend.

In response to these, some policymakers begin to incorporate targeted economic interventions to spur stability and rebuild investor confidence. In this respect, experts call for collaboration and open dialogues among stakeholders in order to rightly address the crisis into the Chinese economy.

<o:p>&nbsp;</o:p>

China is undergoing massive reforms, and the current state has been described by analysts as adjustments that are slow and painful. With this experience happening very rapidly in the last few years, there has been so much importance in how the country deals with the challenges.

China is undergoing massive reforms, and the current state has been described by analysts as adjustments that are slow and painful. With this experience happening very rapidly in the last few years, there has been so much importance in how the country deals with the challenges. Analysts opine that the architecture of the economic structure of the nation is quite robust; however, it is facing pressures from both domestic and international fronts according to CNBC report. Eswar Prasad, professor of international trade and economics at Cornell University, sounded one more alarm that Beijing's economic outlook for the second half of this year is now "flashing red, or pretty close to red". Reports from top economists state that the growth in the economy of China has been controlled. The statistics indicate that overall economic strength has declined. Overall growth has been too slow, and this makes a scary scenario for the investors at large. Property market worries clearly show that the economic growth has been erratic. It did surpass their better times, yet there have been calls for reforms, which cut deeper into the fact of why this juncture had to come. Chinese people are getting used to a new reality As the analyst pointed out it is not just about numbers; it's actually about the real-life impact on Chinese citizens who are adjusting to new economic realities. Hence, what we are witnessing is truly a dramatic shift and different than past phenomena. That's because of several factors, including a shift in global supply chains, coupled with rising energy prices and evolving consumer behavior. With the US Fed widely expected to cut rates in their upcoming meeting, Helen Qiao, chief Greater China economist and head of Asia economics at the Bank of America, told CNBC’s “Street Signs Asia” that the People’s Bank of China will likely not be cutting as much as the US Fed. Still, the slowing of economic growth warrants more easing, Qiao said, adding that job security and income growth are the main drivers for consumer spending, and right now, both are lacking in China. Those companies that were able to survive the storms in the past are thinking through their strategies to find their way through these widespread changes, proving that resilience and innovation would be the necessary tools for survival in this kind of business landscape. All eyes are on China's economic shift to see how that could send waves into the global market and raise questions about the amount of policy adjustment to stabilize it forward. Analysts insist that if given a chance, other markets will experience negative spillovers if left unchecked. Such options should be looked at to make support possible during this trying time. Bank of America had lowered their forecast for China’s 2024 GDP growth to 4.8 per cent, below the government’s target of 5 per cent. Citigroup also lowered their projection to 4.7 per cent following the data released over the weekend. In response to these, some policymakers begin to incorporate targeted economic interventions to spur stability and rebuild investor confidence. In this respect, experts call for collaboration and open dialogues among stakeholders in order to rightly address the crisis into the Chinese economy.

Analyst says China's economy is slowly grinding in painful adjustment

Confidence among American businesses operating in China reached an all-time low as unrelenting geopolitical tensions and a further weakening Chinese economy made times tough for foreign firms operating there as explained in a CNBC report.<o:p></o:p>

Only 66 per cent of 306 member firms surveyed reported profitability for 2023, the lowest rate ever recorded, according to today's report from the American Chamber of Commerce in Shanghai.

Results reflect a sudden contraction in some of the measures of fundamental confidence, as only 47 per cent of the respondents have expressed optimism concerning five-year business prospects in China. It also found a record 25 per cent of companies saying they planned to decrease investment in the country over the last year.

<o:p>Reasons for the decline in investments</o:p>

The cited main reasons for the decline in investment are the poor performance of China's economy. The report said tense relations between Washington and Beijing, combined with geopolitical uncertainties, remain the key challenges to operations alongside the overall economic environment in China. "Rising geopolitical tensions, in particular with looming elections in the United States amid increasingly contentious trade disputes, aside from China's slowing economy, are forcing firms to expand risk management and adjust investment plans correspondingly," the chamber said.<o:p></o:p>

In a separate report, the US China Business Council explained that problems with China's economy came second in a list of urgent concerns of American companies this summer, after the relations between the US and China. Issues of weak domestic demand and resulting overcapacity have hurt profitability, which, in turn, is inducing pessimism in the medium-term outlook of businesses. Besides, companies are giving up market share to Chinese competitors who enjoy more significant government support.<o:p></o:p>

But these are not the only issues for American companies, and there is also strong pressure on European businesses. One report from the EU Chamber of Commerce in China showed that its members are reaching a "tipping point" on further investments in the country due to slim profit margins and bleak forecasts. The organization called on Beijing to act now if it wants more foreign investment.<o:p></o:p>

This year's data shows that while a lot of positive policies have been introduced, they have not restored confidence yet among enterprises or consumers overall," said Allan Gabor, Chair of AmCham Shanghai. Yuan, Markets Leader at PwC China, added, "While facing increasingly bigger economic challenges and intense competition, it is crucial to foreign companies' global competitiveness to maintain business in China."<o:p></o:p>

In the face of such difficulties, some 45 per cent of the AmCham respondents favored a tariff reduction on Chinese imports as one possible step for US government support. China's Ministry of Commerce said earlier that foreign direct investment had declined 29 per cent in the first seven months of this year from the same period last year.<o:p></o:p>

Thus, with the acceleration of such trends, it will be a turn for American firms to operate in this more difficult environment, carrying immense economic and political challenges. The need for adaptation thus will be greater because firms are looking at their strategies and risks in view of changes in economic circumstances in China.

That fact underlined the importance of full understanding market dynamics and possible ways of engagement. While this is the view held by many experts, it calls for clearer risk management and government relations strategies that allow the sustenance of operations in the region.<o:p></o:p>

<o:p>&nbsp;</o:p>

<o:p>&nbsp;</o:p>

<o:p>&nbsp;</o:p>

Confidence among American businesses operating in China reached an all-time low as unrelenting geopolitical tensions and a further weakening Chinese economy made times tough for foreign firms operating there as explained in a CNBC report.

Confidence among American businesses operating in China reached an all-time low as unrelenting geopolitical tensions and a further weakening Chinese economy made times tough for foreign firms operating there as explained in a CNBC report. Only 66 per cent of 306 member firms surveyed reported profitability for 2023, the lowest rate ever recorded, according to today's report from the American Chamber of Commerce in Shanghai. Results reflect a sudden contraction in some of the measures of fundamental confidence, as only 47 per cent of the respondents have expressed optimism concerning five-year business prospects in China. It also found a record 25 per cent of companies saying they planned to decrease investment in the country over the last year. Reasons for the decline in investments The cited main reasons for the decline in investment are the poor performance of China's economy. The report said tense relations between Washington and Beijing, combined with geopolitical uncertainties, remain the key challenges to operations alongside the overall economic environment in China. "Rising geopolitical tensions, in particular with looming elections in the United States amid increasingly contentious trade disputes, aside from China's slowing economy, are forcing firms to expand risk management and adjust investment plans correspondingly," the chamber said. In a separate report, the US China Business Council explained that problems with China's economy came second in a list of urgent concerns of American companies this summer, after the relations between the US and China. Issues of weak domestic demand and resulting overcapacity have hurt profitability, which, in turn, is inducing pessimism in the medium-term outlook of businesses. Besides, companies are giving up market share to Chinese competitors who enjoy more significant government support. But these are not the only issues for American companies, and there is also strong pressure on European businesses. One report from the EU Chamber of Commerce in China showed that its members are reaching a "tipping point" on further investments in the country due to slim profit margins and bleak forecasts. The organization called on Beijing to act now if it wants more foreign investment. This year's data shows that while a lot of positive policies have been introduced, they have not restored confidence yet among enterprises or consumers overall," said Allan Gabor, Chair of AmCham Shanghai. Yuan, Markets Leader at PwC China, added, "While facing increasingly bigger economic challenges and intense competition, it is crucial to foreign companies' global competitiveness to maintain business in China." In the face of such difficulties, some 45 per cent of the AmCham respondents favored a tariff reduction on Chinese imports as one possible step for US government support. China's Ministry of Commerce said earlier that foreign direct investment had declined 29 per cent in the first seven months of this year from the same period last year. Thus, with the acceleration of such trends, it will be a turn for American firms to operate in this more difficult environment, carrying immense economic and political challenges. The need for adaptation thus will be greater because firms are looking at their strategies and risks in view of changes in economic circumstances in China. That fact underlined the importance of full understanding market dynamics and possible ways of engagement. While this is the view held by many experts, it calls for clearer risk management and government relations strategies that allow the sustenance of operations in the region.

Confidence in China from US firms at all-time low

Remy Cointreau reported a steeper-than-expected first-quarter sales drop on Wednesday, with its troubles in the United States now encompassing the liqueurs and spirits division and its Asian operations beginning to falter. The maker of Remy Martin cognac and Cointreau liqueur had organic sales slide 15.6 per cent in the quarter, beating the 13.6 per cent fall analysts forecasted. The company left its full-year guidance unchanged.

Remy had already said the first half would be tough, as it still struggles with weak demand in the United States and a slowing economy in China — two of its key markets for cognac. Cognac makes up around 70 per cent of Remy's sales. Although a 12.2 per cent organic sales decline at the cognac division was better than analysts expected, the liqueurs and spirits business saw a 20.4 per cent organic sales drop, more than twice what analysts had predicted.

The entire spirits industry is seeing a significant slowdown in sales following a post-pandemic surge when consumers, flush with cash, indulged in high-end liquor and producers raised prices. However, Remy has been hit harder in the United States, where cognac has seen poor demand, than elsewhere. Retailers and wholesalers have reduced stock, and rivals are engaged in heavy promotional activity.

These trends continued to press heavily on the cognac business of Remy and more firmly than in the last quarter on its liqueurs and spirits division. The unit houses brands such as Cointreau, The Botanist gin and Bruichladdich whisky.

This was also affected by European sales being significantly down owing to high inflation and heavy promotions by rivals, reduced demand in Southeast Asia, and a whisky destocking in China.

At the group level, Remy referred to the Chinese market as "sluggish." Although cognac sales were surprisingly brisk during the fourth quarter of last year, executives warned that this may not last. More broadly, sales in the Asia Pacific region edged down.

The outlook for Remy Cointreau is increasingly difficult, with sales falling more precipitously than expected, driven by a mix of specific market and sector dynamics. How well it navigates these challenges will be important in stabilising operations worldwide and sustaining investors' confidence.

Remy Cointreau reported a steeper-than-expected first-quarter sales drop on Wednesday, with its troubles in the United States now encompassing the liqueurs and spirits division and its Asian operations beginning to falter.

Remy Cointreau reported a steeper-than-expected first-quarter sales drop on Wednesday, with its troubles in the United States now encompassing the liqueurs and spirits division and its Asian operations beginning to falter. The maker of Remy Martin cognac and Cointreau liqueur had organic sales slide 15.6 per cent in the quarter, beating the 13.6 per cent fall analysts forecasted. The company left its full-year guidance unchanged. Remy had already said the first half would be tough, as it still struggles with weak demand in the United States and a slowing economy in China — two of its key markets for cognac. Cognac makes up around 70 per cent of Remy's sales. Although a 12.2 per cent organic sales decline at the cognac division was better than analysts expected, the liqueurs and spirits business saw a 20.4 per cent organic sales drop, more than twice what analysts had predicted. The entire spirits industry is seeing a significant slowdown in sales following a post-pandemic surge when consumers, flush with cash, indulged in high-end liquor and producers raised prices. However, Remy has been hit harder in the United States, where cognac has seen poor demand, than elsewhere. Retailers and wholesalers have reduced stock, and rivals are engaged in heavy promotional activity. These trends continued to press heavily on the cognac business of Remy and more firmly than in the last quarter on its liqueurs and spirits division. The unit houses brands such as Cointreau, The Botanist gin and Bruichladdich whisky. This was also affected by European sales being significantly down owing to high inflation and heavy promotions by rivals, reduced demand in Southeast Asia, and a whisky destocking in China. At the group level, Remy referred to the Chinese market as "sluggish." Although cognac sales were surprisingly brisk during the fourth quarter of last year, executives warned that this may not last. More broadly, sales in the Asia Pacific region edged down. The outlook for Remy Cointreau is increasingly difficult, with sales falling more precipitously than expected, driven by a mix of specific market and sector dynamics. How well it navigates these challenges will be important in stabilising operations worldwide and sustaining investors' confidence.

Remy Cointreau faces slump in first quarter sales

china-slowdown

China Slowdown, News on China Slowdown, stories on China Slowdown, articles on China Slowdown, China Slowdown stories at Wion, China Slowdown news, China Slowdown latest news

china slowdown

China's economy grows at 4.6%, falling short of ambitious targets

Analyst says China's economy is slowly grinding in painful adjustment

Confidence in China from US firms at all-time low

Remy Cointreau faces slump in first quarter sales