Global Impact | China’s ‘time running out’ to meet economic growth target as August figures falter

In this week’s issue of the Global Impact newsletter, we look at the state of play within China’s economy

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Employees working on a jelly production line at a food factory in Suqian, in eastern China’s Jiangsu province. Photo: AFP

Published: 2:00pm, 23 Sep 2024Updated: 5:12pm, 27 Sep 2024

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September had, seemingly, started somewhat well for China’s economy as trade data for August showed its signature exports grew at their fastest pace in 17 months.

But after President Xi Jinping had subtly toned down China’s focus on achieving its annual economic growth goals this year, disappointing data for August led analysts to question if the world’s second-largest economy could in fact meet its “around 5 per cent” GDP growth target.

Exports have long been the poster child for China’s economic growth, and in August, shipments beat expectations by seeing a year-on-year rise of 8.7 per cent, with the year-on-year export values growing at the fastest pace in 17 months, while export volumes also hit a record high.

China’s imports, though, rose by just 0.5 per cent from a year earlier in August, compared with the 7.2 per cent growth seen in July, surprising on the downside.

Analysts said a higher base for comparison played a role, but import volumes also declined, month on month.