Top Chinese leaders say economy 'facing new difficulties'

China’s top leaders, after a review of the economy, said it faces "new difficulties and challenges" due to sluggish consumer spending. They agreed to implement precise and effective macroeconomic regulation, strengthen countercyclical policies, expand domestic consumption, and adjust/optimise real estate policies.

China's top leaders said the economy was facing "new difficulties and challenges" in a meeting of the 24-person Politburo on Monday.

The country's highest-ranking officials gather annually at the end of July to review the economic situation before their traditional summer break in August.

This year, they met as the post-COVID recovery in the world's second-largest economy was running out of steam, due in large part to sluggish consumer spending.

"The meeting pointed out that the current economic operation is facing new difficulties and challenges, mainly due to insufficient domestic demand, operational difficulties for some enterprises, high risks and hidden dangers in key areas, and a complex and severe external environment," a readout of the meeting on state broadcaster CCTV said.

The Politburo agreed on Monday that China must "implement precise and effective macroeconomic regulation, strengthen countercyclical regulation and policy reserves", according to CCTV.

The meeting, headed by President Xi Jinping, also called for efforts to expand domestic consumption and "adjust and optimise real estate policies in a timely manner", CCTV said.

A run of dismal economic data over recent months has ramped up calls for officials to unveil support measures.