[Economics] China’s economy is on course for a “double dip”

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In recent months, the world’s second-biggest economy has been full of surprises, wrong-footing seasoned China-watchers and savvy investors alike. What could happen next?

The post-covid economy was meant to roar. But it is faltering again itself on firm, “unswerving” leadership and stable economic growth. That should make its fortunes easy to predict. But in recent months, the world’s has been full of surprises, wrong-footing seasoned China-watchers and savvy investors alike.

abrupt exit China has also defied a third prediction. It has failed, thankfully, to become an inflationary force in the world economy. Its increased demand for oil this year has not prevented the cost of Brent crude, the global benchmark, from falling by more than 10% from its January peak. Steel and copper have also cheapened. China’s producer prices—those charged at the factory gate—declined by more than 4% in May, compared with a year earlier. And the yuan has weakened. The price Americans pay for imports from China fell by 2% in May, compared with a year earlier, according to America’s Bureau of Labour Statistics.

But this pent-up demand seems to have petered out. The price of new homes fell in May, compared with the previous month, according to an index of 70 cities weighted by po[CENSORED]tion and seasonally adjusted by Goldman Sachs, a bank. And although property developers are keen again to complete building projects, they are reluctant to start them.

https://headtopics.com/uk/china-s-economy-is-on-course-for-a-double-dip-40352469