China’s latest economic report shows a solid growth of 5 percent in the first half of 2024. However, concerns remain about the impact of a property crisis and sluggish domestic demand on the world’s second-largest economy. In comparison, the US economy is expected to stabilize during the second half of the year with strong consumer demand, according to Deloitte, although official numbers are due on July 25.
China’s GDP grew by 4.7 percent in the second quarter of 2024, slightly lower than the 5.3 percent in Q1 but still robust compared to other major economies. Despite this, experts like Chinese economist Chen Fengying caution that challenges like low post-pandemic consumption and the ongoing real estate crisis are hindering China’s growth prospects.
On the other hand, the US reported a slower GDP growth rate of 1.4 percent for the first quarter, down from 3.4 percent in Q3 2023. The US Department of Commerce attributed this to various factors, including consumer spending and business investments. Deloitte economist Robyn Gibbard predicts a 2.4 percent growth for the US in 2024, followed by a more modest 1.1 percent next year, noting strong consumer spending and a stable economy as key drivers.
While China’s economy was once projected to surpass the US as the world’s largest, recent data from the World Bank shows a widening gap between the two. China’s economy is now two-thirds the size of the US’s, a decrease from previous years.