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China’s economy is on the brink

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China’s gross domestic product expanded by 5.2% in the fourth quarter of 2023, with the same growth rate maintained throughout the entire year.

The announcement from China’s Bureau of Statistics confirmed Premier Li Qiang’s recent disclosure at the World Economic Forum in Davos, making it an unusual pre-release of such a critical data point.

However, when excluding the pandemic years when China’s economy was closed to the world, 2023 marked the slowest annual growth rate since 1990, following the aftermath of the 1989 Tiananmen Square student movement.

Lockdown hangover

Comparatively, in 2022, China’s economy had grown by 3%, while the initial year of the Covid-19 pandemic in 2020 saw growth of just 2.2%.

The 5.2% growth rate in 2023 surpassed the government’s official target of around 5%, which came after a year of economic volatility and shifting expectations.

Maintaining a similar growth pace this year may pose a greater challenge, as policymakers have been hesitant to implement substantial stimulus packages.

FILE PHOTO: Containers are seen at the Yangshan Deep Water Port in Shanghai, China, as the coronavirus disease (COVID-19) outbreak continues, October 19, 2020. REUTERS/Aly Song

Growth target

Forecasts for China’s growth rate in the upcoming year among various global investment banks range from 4% to 4.9%. The formal growth target for this year is expected to be announced during an annual legislative session scheduled for March.

In the short term, China faces a lack of apparent growth drivers.

Export demand is weakening in anticipation of a global economic slowdown.

Chinese households, affected by years of pandemic restrictions and receiving no direct financial support from the government, have become cautious spenders due to a weak job market.

Private businesses have delayed new investments, while foreign investors are withdrawing funds from the country.

While China’s leadership is committed to cultivating new growth engines in sectors like electric vehicles and renewable energy, these initiatives may not be sufficient in the short term to compensate for job creation shortfalls and the overall decline in the real estate sector.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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Anticipation builds for US jobs data and it’s global impact

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What to expect on. a global scale as investors brace for key U.S. employment figures.

Investors and economists are eagerly awaiting the release of the latest US jobs data, anticipating its potential impact on global market trends.

The numbers are expected to provide crucial insights into the health of the world’s largest economy and may influence investment decisions and market sentiments worldwide.

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ASX 200 – what are the key market impacts from reporting season?

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What have investors learned as ASX 200 wraps up reporting season?

As the ASX 200 reporting season draws to a close, market participants are analyzing the outcomes and drawing key insights.

From notable earnings reports to unforeseen challenges, the conclusion of this reporting season unveils critical information that will shape investment.

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Money

AI pushes the Nasdaq to a record-breaking close

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The Nasdaq achieved a record-breaking close, surpassing its previous record high of 16,057.44, which was established on November 21, 2021.

Artificial assistance

Artificial intelligence-related technology stocks, such as Nvidia (NVDA.O) and Microsoft (MSFT.O), have greatly boosted the index.

The Nasdaq Composite has increased by almost 7.2% this year.

The tech-focused index surged 43% in 2023, and as chipmakers gained traction and confidence increased that the Fed might achieve a soft landing—that is, curb inflation without inciting a recession—stocks surged strongly by year-end.

In contrast, Nvidia increased by 1.9% on Thursday, bringing its total gain from a year ago to around 250%.

Market boom

Every S&P 500 subs sector saw a gain at the end of the month.

Analysts at Deutsche Bank report that the index has now increased for 16 of the past 18 weeks, matching the record most winning weeks last attained in 1971.

Bitcoin also moved closer to its all-time high.

The price of the virtual currency momentarily surpassed $64,000 as spot bitcoin ETFs helped drive it to heights last seen in 2021.

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