National Economy in China
Recent reports from the Economic Observer, a branch of Xinhua News Agency, highlight concerns about the stability of local finance and the national economy in China. An analysis of the work of three local finance bureau chiefs led to a critical conclusion that the financial system is on the brink, with potential upheavals imminent.
Adding to the economic concerns, PBOC Adviser, Cai Fang, emphasizes China’s urgent need to invigorate consumption and considers putting money directly into the hands of its citizens. Notably, China’s recent dip into deflation, marked by a 0.3% YoY drop in consumer prices in July, escalates worries as decreasing prices may deter consumers from spending, potentially hindering the recovery post-pandemic. The global implications are vast, given that China is poised to account for 35% of worldwide growth this year. It also drives growth in the Asia-Pacific region, which the IMF predicts will contribute to 67% of the global GDP expansion. Amid these challenges, Chinese policymakers are exploring economic stimulus strategies, with a recent politburo meeting discussing the enhancement of countercyclical measures to boost consumer spending. #China #Deflation #inflation #PBOC #ConsumerSpending #IMF
Credit to : The Money GPS