Retail Slump: China's Recovery Story Faces New Test | World Business Watch | WION

Hinzugefügt: 2026-05-24

[00:00:00]Despite record equity and flows and a surging yuan, China's economy is showing signs of strain as weak consumer spending and labor market pressures slow growth momentum. With the property crisis deepening and consumer confidence remaining fragile, analysts say China's recovery path is becoming increasingly uneven. Take a look at our next report for more on this.

[00:00:24]>> [music] [music] >> China's economic recovery is showing fresh signs of weakness.

[00:00:33]With consumer spending [music] slowing sharply in April.

[00:00:37]Retail sales rose to 0.2% >> [music] >> year-on-year. The weakest pace since late 2022.

[00:00:44]>> [music] >> And far below market expectation. The disappointing data has prompted HSBC to slash its 2026 retail sales growth forecast for China >> [music] >> from 5.2% earlier to 2.8%.

[00:00:58]The country's broader economic indicators [music] also weakened in April.

[00:01:02]Industrial output growth slowed to 4.1% while [music] fixed asset investment contracted 1.6% in the first [music] four months of the year.

[00:01:12]Property investment plunged nearly 14% highlighting continued [music] stress in the housing sector once a key driver of China's growth [music] story.

[00:01:23]The slowdown in China's domestic demand comes even as exports [music] remain resilient.

[00:01:29]Chinese exports surged more than 14% in April as overseas buyers >> [music] >> accelerated orders amid fears of higher global costs linked to the Iran war.

[00:01:39]But economists say export [music] strength alone is not enough to offset weakness at home.

[00:01:45]Analysts say youth unemployment [music] remains elevated while concerns over artificial intelligence replacing jobs are adding to uncertainty.

[00:01:56]The property downturn has also triggered job losses [music] across construction and related industries.

[00:02:02]Meanwhile, China's home prices continue to decline in April.

[00:02:06]Extending a years-long slump in the real estate market.

[00:02:11]Despite government support measures, [music] economists say a broader recovery in housing will take time and likely require additional policy stimulus.

[00:02:21]Chinese officials say volatility in energy [music] markets and supply chain disruptions linked to the Iran war are clouding the global recovery and adding uncertainty to domestic growth.

[00:02:33]Refinery output in China fell nearly 6% in April. While higher commodity prices pushed factory gate inflation [music] to a three-year high.

[00:02:45]From January to April, the national economy maintained a trend of steady progress and high-quality development advanced solidly. However, it should also be noted that the external environment remains complex and volatile. Domestic demand remains relatively weak. Some enterprises face operating difficulties and the foundation for stable and positive economic growth still needs to be consolidated.

[00:03:11]For now, >> [music] >> however, economists expect Beijing to remain cautious on fresh stimulus measures until [music] there are clearer signs of deeper economic deterioration.

[00:03:21]After [music] posting 5% GDP growth in the first quarter, China's weak April data [music] is raising concerns that momentum in the world's second largest economy may be fading again.

[00:03:33]Business Bureau, Beyond [music] World is One.