How will the downturn affect the Chinese economy in the Year of the Dragon?

How will the downturn affect the Chinese economy in the Year of the Dragon?

According to a report by amp.dw.com, many experts predict a slowdown in the Chinese economy. The first sign of this downturn is the decline in pork consumption, which is significant since China accounts for the largest share of global consumption. Personal sales of butchers in Beijing have fallen by a third, even though the price of pork is 20 percent cheaper compared to last year. In addition, China's stock market regulator has decided on measures to curb the collapse of the stock market. These events are causing many stock market traders and securities traders to worry as they could have a negative impact on economic developments. Economists warn of deflation that could arise if consumers don't have enough money to buy goods. The article shows that bookings for international travel have increased 15-fold compared to last year, but also that these figures could be the result of difficulties in the previous year due to infection control measures. Additionally, the Chinese government's official 2023 growth target was announced in January, but certain economic data raises doubts about its accuracy. These contradictions in statistics could have an impact on the Chinese economy.

Given the above facts, the Chinese economy could actually be facing a downturn. The reduced consumption and the measures taken by the stock market regulator could lead to prolonged deflation. But the increased bookings for foreign trips must be placed in the context of the previous difficulties caused by infection control measures. Doubts about the accuracy of published economic data could also indicate a possible weaker economic situation. It is recommended to monitor the development of the Chinese economy more closely in the coming months. If the downturn materializes, it could have a negative impact on the global market and the financial sector.