Integrity Score 2097
No Records Found
No Records Found
Chinese surge can't be replicated again. There's a huge transition being undertaken by Xi to consolidate himself as the messiah and also with the idealogy of the Communist government with regards to economics. They both want to take power and money away from the technocrats and big technology complexes while diverting the entire focus onto manufacturing
Economists have been forecasting lower economic growth for China this year, and if the latest quarter numbers are anything to go by, the situation could be worse than they have predicted.
Energy shortages, soaring commodity prices, regulatory crackdown, supply chain bottlenecks have all created a perfect storm for the Chinese economy, it seems. According to the Chinese official GDP figures for the quarter that ended in September, China's economy grew just 4.9 per cent, well below analysts' expectations. This is also the slowest rate of expansion for a year. (https://www.aljazeera.com/economy/2021/10/18/china-economy-slows-amid-power-crunch-supply-blockages)
The slowdown has also resulted from flooding in various cities, the resurgence of coronavirus, and the widespread power crunch that has hindered industrial production across the country. The real estate crisis led by Evergrande has also dented the growth, with more and more people growing wary of the sector.
Major investment banks have been warning about the falling GDP for China. While the prediction is at 8.2% for this year, it may go even further down because of China's challenges. (https://www.cnbc.com/2021/10/15/china-economy-gdp-forecasts-by-goldman-jpmorgan-citi-stanchart.html)
The Chinese economists are not so downcast. They are looking at the silver lining already by pointing to increased exports and consumption growth. For instance, consumption has grown a year-on-year rate of 4.4 percent in retail sales. Premier Li Keqiang has said that China is strong enough to face any challenges and that the country would achieve the goals it has set for itself. (https://www.globaltimes.cn/page/202110/1236645.shtml)
But the world is not so confident. Tumbling stocks across the globe indicated that investors are not that gung-ho about China's growth prospects. (https://www.cnbc.com/2021/10/18/asia-markets-china-economy-currencies-oil.html)
China has surprised in the past, and it could do it again. But for that to happen, it has a few things to sort out, like power crunch and the problem in the real estate sector.
Read more:
China's economy getting "walloped."
https://edition.cnn.com/2021/10/17/economy/china-gdp-q3-intl-hnk/index.html
Risk of stagflation?:
https://www.scmp.com/economy/china-economy/article/3152786/china-gdp-slowdown-third-quarter-growth-ramps-fears-more?utm_source=rss_feed