China’s economic growth has hit a stumbling block, raising concerns among economists and policymakers alike.
In recent years, the country’s rapid expansion has been a global economic engine, but recent data suggests a significant slowdown.
The primary factor behind this slowdown is a decrease in domestic consumption. As Chinese households save more and spend less, it puts pressure on businesses to cut back on production and investment. Additionally, the property market, which has been a pillar of the Chinese economy, is showing signs of strain as government measures to cool the real estate sector take effect.
Export growth, another key driver of China’s economy, is also facing challenges. The global economic landscape has become more competitive, with other nations vying for market share.
Furthermore, demographic changes, such as an ageing population, are impacting the labour force, potentially leading to a labour shortage in the future.
David Zhang from China Insider warns that Beijing will soon be forced to act. #featured
