Chinese Economy Getting Worse In 2024: for china year 2023 The biggest bad news was its declining economy. The country’s economy is struggling to recover from the impact of the COVID-19 shutdown and long-standing structural problems have become impossible to ignore.
The economic data has been troubling throughout the year and there is no improvement in it. An article in Foreign Policy states that foreign investment has declined and capital outflow has increased rapidly. Although job numbers have recovered somewhat on paper, official figures are highly unreliable, and the picture on the ground is dismal. Youth unemployment in China has reached such a high level that the government stopped publishing figures this year.
IMF estimated based on data
Based on China’s official data, the International Monetary Fund (IMF) has said that China’s GDP will increase by more than 5 percent next year, but it is not clear whether this is true or not. The times are worst for new graduates, who are facing a job crisis like young Americans did during the 2009 financial crisis. One of the main reasons for China’s economic crisis is that people are not spending. This happened because the Chinese government was stingy in providing assistance to families during the pandemic. There was massive government spending to implement the zero-Covid policy, leaving local authorities with no money left to support the public.
Attack on private sector in China
In China, there has been a sustained government crackdown on parts of the private sector over the past three years, leading to the loss of jobs in everything from game programming to school tuition. All this has made people more aware of the arbitrariness of government power and the risks that come with it. It was expected that this action might end this year, but it expanded further. After the disappearance of jobs during the lockdown, people in China no longer have much confidence in the future. People are not marrying, due to which the demographic crisis has increased. The article said that, as many had feared, China appears to be getting old before it gets rich.
Prices increased in real estate
Even people’s savings are not safe in China. Real estate is a major medium for investing money in China, where 70 percent of domestic property is in it. For two decades, property prices rose faster than the rest of the economy. Now, China’s real estate developers are almost bankrupt and it is slowly falling into ruin. The government has worked hard to raise the prices of new homes, but they are still falling. It was expected that the Chinese economy would recover in 2023 and start playing its role as an engine of global growth. Instead, it stopped at a point called EMF drag, CNN reports.
New Year threat in China
Despite China’s many problems – the real estate crisis, weak spending and high youth unemployment – most economists believe the world’s second-largest economy will meet its growth target of about 5 percent this year. But it is still below the average of 6 percent before the Covid pandemic and the new year 2024 looks inauspicious. According to CNN report, after this the country may have to face stagnation for decades.
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