China pharmaceutical university, University in Nanjing, China

The Chinese economy is in trouble and the road to recovery may be a long one.Much of it was expected as the global economy, which buys Chinese products, has been slowing down. China could barely avoid a contraction in the June 2022 quarter. However, it was not expected that Beijing would fail to live up to its promises by such a wide margin, reported Financial Post.In its latest report, the World Bank projected China to grow by a mere 2.8 per cent in 2022. Moreover, for the first time in three decades, China's growth would lag behind the rest of the Asia-Pacific region.Interestingly, Capital Economics predicted a major slowdown in the Chinese economy at least two years before the COVID-19 outbreak. The pandemic helped consolidate the trend."Construction, a key engine of China's growth and commodity demand, will slow substantially over the next few years, whether or not the economy escapes the current crunch unscathed," Chief Asia Economist of the outfit, Marks Williams said in September 2021.The note was published after the Evergrande crisis unfolded in China in mid-2021. The title of his report was precise, "Property crunch will be followed by lasting decline."The link between property or real estate and economic growth is simple. Real estate accounts for 10 per cent of the workforce, 25 per cent of total fixed asset investment and 29per cent of GDP. If real estate is down, everything else is down, reported Financial Post.Meanwhile, China's steel production is down by 5.7 per cent during the first eight months of 2022. China is the world's largest steel producer. Clearly, the declining global demand is hurting China.But that's not all. Monthly data for August show declining retail sales inside China as well and Capital Economics expects further declines in September. Reduced consumer demand (both exports and domestic sales) is telling on corporate profit, reported Financial Post.With the US Federal Reserve implementing another 75 bps rate hike, sacrificing growth opportunities, to tame inflation, and Europe is reeling under high inflation and slow growth; things might get more difficult for China in the days to come.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

China Pharmaceutical UniversityFOLLOW

China pharmaceutical university, Latest News

Thiruvananthapuram, Oct 10 Former Defence Minister A.K.Antony on Monday recalled Samajwadi Party founder Mulayam Singh Yadav, who had ... ...

To counter China's growing influence in the Pacific, the United States has dialled up every effort and made attempts that would reduce the possibility of other countries in the Pacific region getting into China's orbit, Global Strat View reported. ...

China's Zero-Covid policy and its sporadic lockdowns are pushing multinational firms from its lands to different countries, a media report said citing the report of the European Union Chamber of Commerce. ...

Across much of the developing world, China finds itself in an uncomfortable position as the world's debt collector amid rising inflation and a weakening global economy. ...

San Francisco, Oct 9 Digital payments company PayPal, co-founded by Elon Musk, has taken a U-turn on a ... ...

Chengdu (China), Oct 8 China won their fifth consecutive women's title after sweeping Japan 3-0 at the World ... ...

Two confidential internal documents revealed China's strategy for installing the 14th Dalai Lama of its own choice. ...

The Chinese economy is in trouble and the road to recovery may be a long one. ...