KPMG – China Economic Monitor, 2Q 2024

In the second quarter of 2024, China's GDP grew by 5.3% year-on-year, surpassing market expectations and driven by the implementation of equipment renewal policies and increased external demand. Industrial production, manufacturing investment, and exports were the main drivers of economic growth. While service consumption strengthened, consumer goods consumption lagged behind. Manufacturing and infrastructure investments maintained strong growth momentum. The property market faced challenges with weak sales and sluggish investment, but is expected to improve due to a low base last year and increased liquidity for property developers. Export growth returned to a positive trajectory, driven by global manufacturing recovery and strengthened regional collaborations. Challenges remain in the real estate and local government investments sectors, as well as uncertainties in external demand. It is essential to enhance residents' income growth, boost confidence to spend, and provide support for the demand side of the real estate sector.