China’s 5% Growth Questioned as Property Slump and Record Low Births Undermine Domestic Economic Stability

China: Official statistics reflect that growth had slowed to 4.5% in the last quarter, which accentuated its dependency on exports and a lack of domestic demand. Its record balance of $1.19 trillion surplus supported growth, although experts highlight its unsustainability.

Locally, conditions worsened too, with property investment down 17.2%, house prices down 2.7% in December, and retail sales of only 0.9%, which was the lowest in three years. China’s demographic crisis also worsened, with the country’s births falling to 7.9 million, the lowest level recorded since 1949, and China’s population shrinking for the fourth straight year.

Economists question the accuracy of the GDP figure of 5%, believing the real figure could be overstated by as much as 1.5% due to fragile consumer confidence, incomplete housing developments, and strained finances at the local authority level.

Conclusion: While Beijing marks its accomplishment in meeting its growth target, the data also highlights that its economy is not robust; it is export-driven but is facing challenges in its real estate sector as well as consumers’ reluctance to spend, not to mention its declining population.