There is no end to China’s economic problems, the country is struggling with low spending and unemployment.

Beijing (Uttam Hindu News): China The biggest bad news of the year for India was its declining economy. The country’s economy is struggling to recover from the impact of the COVID-19 shutdown, and long-standing structural problems have become impossible to ignore. The economic data has been troubling all year and there is no improvement. An article in Foreign Policy states that foreign investment has declined and capital outflow has increased rapidly.

Although job numbers have recovered somewhat on paper, official figures are highly unreliable, and the picture on the ground is dismal. Youth unemployment in China has reached such high levels that the government stopped publishing figures this year. The article states that based on China’s official data, the International Monetary Fund (IMF) has said that China’s GDP will grow by more than 5 percent this year, but it is not clear whether this is true or not. . The times are worst for new graduates, who are facing a job crisis like young Americans did during the 2009 financial crisis.

One of the main reasons for China’s economic crisis is that people are not spending – a big problem given that boosting domestic consumption has been key to Chinese economic hopes for years. This is partly because the Chinese government has been skimpy on providing assistance to families during the pandemic. There was massive government spending to implement the zero-Covid policy, leaving local authorities with no money left to support the public.

Over the past three years there has been a sustained government crackdown on parts of the private sector, leading to the loss of jobs in everything from game programming to school tuition. All this has made people more aware of the arbitrariness of government power and the risks that come with it. It was expected that these actions would end this year, but they have expanded further, the article said. After jobs disappeared during the lockdown, people in China no longer have much confidence in the future. People are not marrying, which has increased the demographic crisis. The article said that, as many had feared, China appears to be getting old before it gets rich.

Even people’s savings are not safe in China. Real estate is a major vehicle for investing money in China, where it accounts for 70 percent of household wealth. For two decades, property prices rose faster than the rest of the economy. Now, China’s real estate developers are almost bankrupt and it is slowly falling into ruin. The government has worked hard to raise prices of new homes, but they are still falling.

It was expected that the Chinese economy would recover in 2023 and begin playing its role as an engine of global growth. Instead, it stopped at a point the EMF is calling “drag,” CNN reports. Despite its many problems – the real estate crisis, weak spending and high youth unemployment – ​​most economists believe the world’s second-largest economy will hit its growth target of about 5 percent this year. But it is still below the pre-Covid pandemic average of 6 percent, and the new year 2024 looks inauspicious. According to CNN report, after this the country may have to face stagnation for decades.