China’s economy grew by just 4.7% in the second quarter of 2024, falling short of the expected 5.1% and slowing from the previous quarter’s 5.3% growth, according to official data. This marks the slowest growth since early 2023, driven by a prolonged property slump and increasing job insecurity which have stifled consumer spending. Retail sales growth hit an 18-month low as deflation forced price cuts across various sectors. The ongoing property crisis deepened further, with new home prices dropping at the fastest rate in nine years, eroding consumer confidence and affecting local government finances. Amid these challenges, Goldman Sachs has revised its growth forecast for China to 4.9% for 2024, suggesting that Beijing may need to intensify fiscal and housing policy easing to meet its 5.0% growth target.