China’s economic recovery is dead and buried and the downturn ahead: “We can’t do worse”

China’s economic recovery is dead and buried and the downturn ahead: “We can’t do worse”

One Chinese economic indicator after another is disappointing. The evolution of producer prices is also not at all satisfactory. It decreased by 4.6 percent.

Why is this important?

The Chinese economy was expected to recover strongly after the issuance of the anti-virus policy. But the hoped-for economic growth did not materialize, as domestic demand could not compensate for the decline in global demand. China has to fight deflation while we have been fighting inflation for more than a year.

In the news: The Chinese economy is not doing well.

  • Producer prices fell 4.6 percent in May, the biggest loss in 7 years.
  • Inflation – the evolution of consumer prices – was just 0.2 percent (yoy), compared to 0.1 percent in April.
  • On a monthly basis, prices fell by 0.2 percent. So the shrink monster rears its head.

the details: Weak global demand and lower commodity prices.

  • These bad numbers can w

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Faye Welch

Faye Welch

"Travel enthusiast. Alcohol lover. Friendly entrepreneur. Coffeeaholic. Award-winning writer."

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