China Economy: Low Retail Sales And Huge Decline In Exports, China’s Economy In Crisis

China Economy: Low retail sales and huge decline in exports, China’s economy in crisis.

With the worsening economic imbalance, China’s economy is steadily losing momentum. China’s retail sales fell to 3.1 percent in June from a 12.7 percent increase in May, reports news agency.

The National Bureau of Statistics (NBS) has released a report regarding this.

At the same time, the report of Nepal Digital news outlet said that low retail sales, falling export orders and slow industrial production indicate China’s stalled economic recovery.

Decrease in private real estate investment.

Industrial production growth picked up from 3.5 per cent in May to 4.4 per cent in June, but demand slowed.

Even though investment by state-owned enterprises increased by 8.1 percent in the first six months of 2023.

Private real estate investment decreased by 0.2 percent, indicating weak private business confidence. China’s exports fell 12.4 percent in June, the most in three years, while imports fell 6.8 percent.

According to the report of news agency, FDI has also declined by 5.6 percent in the first five months of the year.

China Economy: China performing poorly in comparison to global markets.

According to the report of news agency, China’s equity market is performing worse than other global markets this year.

This shows that weak growth prospects and lack of policy stimulus have already paid the full price.

China’s IPO declined.

China’s IPO applications to drop by a third in the first half of 2023. This was mainly due to volatility in earnings, slowing economy and tighter regulatory scrutiny affecting companies.

Despite the festive season, there has been a decline in car sales and residential real estate sales.

The sector has turned cautious on hiring and expansion since the zero-Covid restrictions were lifted, reports news agency.

Xi Jinping’s emphasis on state-owned enterprises at the expense of the private sector is unlikely to revive economic growth as the productivity of these corporations is much lower than that of private companies in China.

Difficult to find a solution to a slowing economy.

Domestic consumption remains weak due to pessimism among people about the state of the economy. Local governments themselves are under financial pressure.