Chinese economy

economist expects Chinese economy recovers slowly The Beijing government needs more stimulus plans. to support economic activities And bring back the shaky consumer confidence.

behindChinaStrong start to the year When strict COVID control measures are lifted But the latest data suggests that economic activity is declining rapidly. due to sluggish demand both domestically and internationally Including the real estate market continued to decline.

Reuters According to economists polled by Reuters, China, the world’s third-largest economy, could grow just 0.5 percent in the second quarter compared to three months earlier.

Some economists say that chinese economyslowdown due to strict COVID control measures and regulation in the sectorreal estateand technology, although the government has tried to cancel some measures to support the economy.

Data on Thursday (July 13) shows that Chinese exports fell the most in three years in June, plunging 12.4% more than expected. year on year due to slowing global demand

New home prices in June unchanged This is the weakest performance this year. The real estate sector accounts for 1 in 4 of economic activity.

The producer price index fell the fastest in seven years in June, while the consumer price index slipped to deflationary levels.

with the unstable economic situation caution in spending by households and private businesses causing people to save money and turn to pay off debt Rather than buying or reinvesting The youth unemployment rate hit a record high.

However, economists expect China’s gross domestic product (GDP) to grow 7.3 percent from a year earlier. in April-June While the first quarter grew 4.5%.

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Insiders and economists say the Chinese government may introduce more stimulus measures. including fiscal spending to fund large infrastructure projects. More support for consumers and private businesses and relax some real estate policies. But analysts think the Chinese economy may not recover quickly.

senior bank officer Revealed on Friday (July 14) that central bank of chinaPolicies such as the minimum reserve ratio policy (RRR) and medium-term credit will be applied. to cope with various challenges

Analysts surveyed by Reuters expect the Bank of China to cut the minimum reserve ratio (RRR) of 0.25 percent in the third quarter, giving banks more capital. and maintain the interest rate on the loan

In June, China cut its benchmark lending rate by 0.1 percentage points, the first rate cut in 10 months.

but the Bank of China May be cautious in cutting interest rates further due to aggressive interest rate reduction measures May cause capital to flow out of troubled financial markets and put pressure onyuanwhich recently depreciated to the lowest level in 8 months

2023-07-16 07:30:00
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