Analysts at Goldman Sachs predict that China’s economy could grow by a modest 4.8% throughout 2024. The main catalyst for economic growth is buoyant consumer demand in the second-largest global economy. The common idea in forecasts is that China will hardly please investors with robust economic growth in 2024.
Nevertheless, economists anticipate that the service sector will gain momentum in China, thus driving a recovery in overall business activity. The service sector is expected to expand by 9.2% this year, much stronger than a 6% increase in the manufacturing sector.
Business activity in the domestic service sector will receive a boost from a thriving travel industry and leisure business. Analysts at Goldman Sachs expect high demand for hotel services and online travel agents in 2024. Besides, Chinese consumers are likely to revise their spending criteria. Previously, they preferred quantity to quality, but nowadays the situation is changing. From now on, consumers give priority to the quality of merchandise and services, Goldman Sachs detected the new trend.
Earlier, Bloomberg warned that the world will face new trade conflicts that will pop up in the short run. The reason is that China has been ramping up production output. Experts reckon that stimulus programs recently launched by China’s authorities to bolster domestic production and exports could entail an economic standoff with the US, the EU, and other economic rivals.
