China Faces Recession: Weak Real Estate, Stagnant Consumption

China's economic growth continues to slow down in October as weak consumer demand, escalating real estate crises, and declining investment flows take their toll. Fixed asset investment fell 1.7% in the first 10 months of the year, while real estate investment plummeted 14.7%. Industrial production only rose 4.9% due to sluggish factory activity, while retail sales increased by 2.9% – marking the fifth consecutive month of slowing consumer spending.

Home prices have recorded the strongest decline in nearly a year, indicating that the real estate sector continues to weaken. Exports have decreased for the first time in nearly two years due to trade tensions. Inflation rose slightly by 0.2% and core CPI increased by 1.2%. Growth in the third quarter fell to 4.8%, putting pressure on policies to stimulate domestic demand and stabilize the housing market.