China is set to announce its sixth economic stimulus package on Saturday, October 12, after five failed attempts since 2015.
Despite these efforts, growth in the world’s second-largest economy has slowed, with consumer spending lagging behind. Chinese families prefer to save rather than spend, with savings exceeding 100% of GDP. Real estate, which contributes 29% to GDP, has collapsed since the government imposed restrictions in 2021, leading to a housing market crash. Experts warn that without a recovery in housing, deflation could persist, further stifling growth.