According to Pantheon Macroeconomics, China’s struggling property sector is still a “hefty headwind” to growth with estimates property investment has fallen 17 percent year on year.
Retail figures were also found to have slumped in December to their weakest levels since August 2020.
Victoria Scholar, Head of Investment at Interactive Investor commented: “Beijing’s efforts to reign in China’s overreliance on leverage, the fallout for its property sector and the country’s zero-Covid tolerance policy are all weighing on its growth outlook.
“China’s record trade surplus reported last week for December highlighted the domestic weakness coming through with a sharp slowdown in import growth.
“Today’s retail sales figures paint a similar picture, as weaker consumption suggests China’s economy is bracing for a further slowdown.”