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Financial Analyst
David Scutt, FOREX.com APAC Market Analyst, explains how China’s property downturn is weighing on the broader economy and why policy measures may struggle to reverse it.
Scutt outlines how China’s economy is losing momentum, led by a sharp slowdown in the property sector. Fixed asset investment rose just 1.6% in the first seven months of the year, dragged down by a 12% drop in property investment, with sales, construction starts, and home prices all declining. The weakness is spilling into consumption and manufacturing, with retail sales growth slowing to 3.7% and industrial production to 5.7%, alongside falling manufacturing prices.
Scutt notes that policymakers have eased access to consumer finance, allowed retirement savings to be used for home purchases, and tasked state-owned funds to buy properties, but Scutt warns that fragile demand and developer pressures mean growth challenges remain broad-based.
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---- Written by Frederic Guetin, StoneX TV Producer
---- Expert: David Scutt, FOREX.com APAC Market Analyst
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