Will the China game be over forever amid faltering economy?
China’s economy has not improved after three years of strict Covid lockdown. Recent statistics point towards this.
Retail sales, industrial production and investment all grew at a slower rate than expected in July. Meanwhile, the
decline in aggregate demand has adversely affected the world's second largest economy.
China's economy improved largely as expected in the first quarter of the year. In terms of assets and exports too,
the performance was slightly better than expected. There was a halt in the sale of land in the second quarter, which
affected the country's economy. Many big real estate companies are in debt.
In addition to the financing challenges local governments data-faced, fiscal spending was tightened. This hampered the
development of the entire country. The economic development of the whole country declined.
At a Politburo meeting in late July, China's senior leadership outlined the difficulties facing the economy.
Emphadata-sized on implementing supportive policies to help stabilize the economy. Fiscal policy easing was expected
with a marginal easing of asset policies for infrastructure investment.
The country's economy grew by only 3 percent in 2022. According to a survey of 37 economists, growth was
predicted to slow down in the first quarters of 2023, which turned out to be true.
Since the beginning of economic reforms in 1978, China's GDP has grown at an average of about 10 percent
annually. But since the start of the pandemic, the journey of the world's second largest economy has been full of
ups and downs. Repeated crackdowns on the private sector and the strict Covid lockdown have wreaked havoc on
supply chains after early hopes of a revival in 2020. This has had a direct impact on investors.
Another bad news came in january 2023. The country's population declined for the first time in 60 years last year,
raising worrying questions about its future workforce. Now the way the country's economy has registered a
decline, and the population has decreased. The question is, can the country now hope to return to high growth?