What is happening with China's economy?

Prices of products are decreasing in China. you might say it is good if people can buy things at a cheaper rate.

But it is not!

Greatness can only be achieved by the growth

To be among the greatest economies in the world China needs its economy to grow and it is a point of concern for the Chinese government.

Policymakers have failed to reignite domestic demand during a property sector crisis and after the ending of strict pandemic controls.

And it is simple less demand means less price.

According to the National Bureau of Statistics, The consumer price index fell 0.2 percent year on year in October, compared with a 0.1 percent fall forecast. The CPI was unchanged in September.

Producer prices fell for a 13th consecutive month, dropping 2.6 percent year on year, against a 2.7 percent decline forecast by economists and following a 2.5 percent contraction in September.

This is making it hard for businesses to make money due to which layoffs are also happening. High unemployment may come as a result of the situation.

Many economists believe that What we are seeing today is mainly the result of a supply excess, rather than a collapse in demand.

The Chinese government has been easing monetary policy and restrictions on property purchases and mortgages to try to stabilize the real estate market.

One positive sign from the trade data was China’s imports, which expanded year on year for the first time since February, rising 3 percent.

Economists argue the government needs to do more to stimulate domestic consumption and lift flagging demand in the economy as the economy in 2023 has benefited from a low base effect compared with a year earlier, when Covid-19 controls depressed activity, next year could prove more challenging for GDP growth unless the recovery gains more traction.

We will keep you updated on what is happening with China’s economy.

Until then…

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