China economic focus July 2023: 5% GDP target at risk
China’s sluggish recovery in Q2 puts the 5% growth target at risk. Weak domestic and external demand for goods is behind poor industrial production. Domestic consumption is weakened by high youth unemployment and households prioritising mortgage repayment. The politburo meeting in late July showed that the government would continue to issue supportive measures to secure the growth target. Boosting private confidence and household consumption are the priorities.