ING has revised its earlier GDP estimate of China for financial year 2022 to 4.8% from 5.4%.
China, which is endeavoring to reform into a more consumption base economy, saw consumption and fixed asset investment growing 1.7% and 4.9% Y-o-Y in December respectively. Whereas, production grew 4.3% Y-o-Y in December. Low consumption growth points to low job and wage growth, leading to less consumption.
Deleveraging of the real estate sector has had a bad impact on some part of the economy, forcing the government to restructure real estate market policies leaving behind infrastructure investment plan.