21 July 2024

How China's Economy Compares to the US's After Latest Results

Micah McCartney

China's statistics bureau on Monday reported solid growth for the country in the first half of 2024, but analysts say an ongoing property crunch and muted domestic demand continue to weigh on the world's second-largest economy.

Meanwhile, the U.S. economy is set to stabilize in the second half of 2024 and into next year, auditing and financial advisory firm Deloitte predicts, with consumer demand still strong. The official updated numbers for the U.S. will be published on July 25.

China's National Bureau of Statistics reported on Monday that the country's GDP grew by 5 percent in the first half of 2024. The second quarter saw a year-on-year growth rate of 4.7 percent, slightly down from the 5.3 percent growth in Q1, indicating a slower pace but still robust compared to other major economies.

"Though the GDP growth in the second quarter is lower than the first quarter, it's still a relatively fast growth among major economies, which builds a sound foundation for the achievement of the annual GDP target," state-run media outlet the Global Times quoted Chinese economist Chen Fengying, as saying.

Beijing again set a goal of "around 5 percent" economic expansion this year after logging 5.2 percent in 2023. Many subject matter experts, including China's former No. 2 Li Keqiang, have not taken the country's growth figures at face value, however.

The data release coincided with the start of the Third Plenum in Beijing, where senior officials are expected to discuss reforms to spur economic growth in the latter half of the year​.

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