China economists see weak demand despite expected rate cuts

People walk along the Huguosi street, Xicheng district, a dedicated food street in Beijing on August 23, 2024. (Photo by ADEK BERRY / AFP)

Beijing: China economists are increasingly pessimistic about the prospects of domestic demand in the country as they lower 2024 forecasts on inflation, investment and consumption despite expected rate cuts.

Retail sales, a key gauge of consumer spending, are now forecast to rise just 4% this year, down from a previous projection of 4.5%, as expectations for growth in the two remaining quarters are slashed, according to the median estimate of economists surveyed by Bloomberg this month.