China’s Economy Is in Deep Trouble
==========
China's GDP growth has slowed to 4.75% from 7-8% in the 2010s, indicating deep trouble. The unbalanced economic model, relying on investment, exports, and cheap labor, is the root cause. Investment accounts for 50% of GDP, leading to manufacturing excess capacity. The housing and credit market bubble is also a concern, with housing constituting around 20% of the economy and private sector credit increasing by around 100% of GDP since 2008. China's weak demographics, local government finances, and trade relations with the US further impact its growth prospects. The Chinese government faces challenges in dealing with the bursting of the housing and credit market bubble. The IMF has urged structural reforms to increase household consumption, but there are few signs of progress. China's economic troubles have global implications as it is the world's second-largest economy and a major consumer of international commodities.
#China #Economy #Gdp #Investment #Exports #HousingMarket #CreditMarket #Demographics #TradeRelations
https://www.aei.org/economics/chinas-economy-is-in-deep-trouble/
American Enterprise Institute /
npub14z…4fwd3
2024-07-16 19:58:57
Author Public Key
npub14zq8m4ucx6nteqtxp2d3m8z3tqa2hkcwh4rm96lde0cx2cjwlh9s94fwd3Published at
2024-07-16 19:58:57Event JSON
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"content": "China’s Economy Is in Deep Trouble\n==========\n\nChina's GDP growth has slowed to 4.75% from 7-8% in the 2010s, indicating deep trouble. The unbalanced economic model, relying on investment, exports, and cheap labor, is the root cause. Investment accounts for 50% of GDP, leading to manufacturing excess capacity. The housing and credit market bubble is also a concern, with housing constituting around 20% of the economy and private sector credit increasing by around 100% of GDP since 2008. China's weak demographics, local government finances, and trade relations with the US further impact its growth prospects. The Chinese government faces challenges in dealing with the bursting of the housing and credit market bubble. The IMF has urged structural reforms to increase household consumption, but there are few signs of progress. China's economic troubles have global implications as it is the world's second-largest economy and a major consumer of international commodities.\n\n#China #Economy #Gdp #Investment #Exports #HousingMarket #CreditMarket #Demographics #TradeRelations\n\nhttps://www.aei.org/economics/chinas-economy-is-in-deep-trouble/",
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