Doubling Expectations of China's Second-Quarter Economic Slowdown Increase Pressure for New Stimulus Measures

Estimates suggest that China's economy will experience a slowdown in growth during the second quarter of this year, reaching around 4.5%. This comes after a strong start to the year, amid declining domestic demand, deteriorating investment levels, and a housing market recession. A Reuters survey indicated that growth is expected to drop from 5.0% in the first quarter to 4.5%, which is the lower end of the government's targeted range. This situation is intensifying pressure on Beijing to launch new fiscal and monetary stimulus packages.

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