By our economics editors
Mar 03, 2024 at 12:31 PM Update: an hour ago
The state of China’s economy is a “major concern” for delegates at the annual meeting of the People’s Congress of the ruling Chinese Communist Party (CCP). China’s economy suffers from several ills.
One of those ills is employment for the youth and recent graduates. Youth unemployment in China is high. Exactly how high is currently unknown, because the Chinese statistics agency has stopped publishing figures. They would be too politically sensitive.
In addition, the real estate sector is also a persistent problem for the CCP. The sector once accounted for about a quarter of the Chinese economy, but real estate companies took a lot of risk when taking out loans.
Due to a shrinking real estate market, these companies frequently fell into debt. Many construction projects are now at a standstill.
Furthermore, the global economy is cooling down. China is the world’s largest exporter and therefore suffers a lot from this. In 2023, the world’s second-largest economy grew by 5.2 percent. That is the smallest growth in the Chinese economy in decades.
According to a CCP spokesperson, the fundamentals of the Chinese economy are strong enough to withstand both external shocks and internal difficulties.
Image: NurPhoto
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2024-03-03 11:31:48
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