China’s economy grew at the slowest pace in decades in 2023 at 5.2%, according to official data. We expect growth to ease to 4.2% in 2024 and 4.1% in 2025 on the back of a long-running property downturn, weak export demand and low investor and consumer confidence. Recent economic indicators underscore sluggish momentum in the world’s second-largest economy. China’s consumer prices fell at the fastest annual rate in 15 years in January, losing 0.8%, while the country’s producer price index dropped 2.5% on-year, tapping into long-standing concerns over consumer demand. Deflation is weighing on output. China’s manufacturing activity contracted in January for the fourth consecutive month. Nearly nine-tenths of the foreign money that flowed into China’s stock market in 2023 already left by year-end as mounting concerns grow about Beijing’s willingness to take serious action to boost flagging growth.