Six Red Flags Pointing to China’s Economic Slowdown
The comments below are an edited and abridged synopsis of an article by Tyler Durden
The People’s Republic of China is the world’s second-largest economy, responsible for one quarter of global GDP growth this millennium, so when the country catches a cold, the world notices.
The past several months have seen an avalanche of bad economic news for China, putting the country’s post-pandemic recovery, and global economic growth, in jeopardy.
Visual Capitalist’s Chris Deckert looks at six indicators (GDP, exports, CPI, youth unemployment, the yuan vs the US dollar; and new loans) that point to China’s economic slowdown.
So what’s next? Foreign Affairs recently published “The End of China’s Economic Miracle,” arguing that China’s troubles could be a US opportunity.
And while this may be somewhat premature, the Middle Kingdom has some serious structural issues to contend with, many of its own making. Some of the top challenges include crackdowns on the tech sector, a collapsing real estate market, a larger debt crisis, and a shrinking population.
But large-scale government intervention does not appear to be in the offing, beyond exhortations for consumers to spend more and blaming Western media for engaging in “cognitive warfare.”
It’s no wonder that consumer confidence has plunged so low. At least we think so: The Chinese government stopped publishing that, too.