China’s economy is nearing a crisis due to missed activity data since the second quarter.

Growth concerns arose during the 2008-09 global financial crisis and the 2015 capital outflow fear.

China’s debt-fueled investment in infrastructure and property has peaked, and household consumption is its only remaining demand source.

China’s recovery depends on whether households spend more and save less, and to the extent that consumer demand compensates for economic difficulties.

Weak domestic demand is blamed for private sector investment June and July deflation in China, which could worsen the recession and debt.

Experts worry that China may not attain its 5% growth objective without extra fiscal assistance after July activity figures.

China’s appetite for big fiscal stimulus is also dubious due to huge municipal debt.

The property market, which accounts for 25% of economic activity, is stressed, raising concerns about officials’ ability to stop expansion.

Young unemployment rates exceed 21% and deflationary pressures on profit margins warn many consumers and small businesses may suffer economic hardship as profound as a recession.