Troubled times for the economy of the great titan of Asia. After the high -moral and growth- after erasing the throttling of pandemic restrictions at the beginning of the year, the pace of the second largest locomotive in the world it deflates. China has entered deflation after consumer prices fell for the first time since 2021. Another hit after the slowdown in GDP growth of the second quarter of the year.
The bad news this Wednesday in beijing has been that the consumer’s price indexan indicator of the prices of goods as they leave the factory gates, fell 4.4 percent in July, a drop of 0.3% year-on-year. In other words, Chinese consumers do not spend as much as the government expected when it tried to revive the economy after the stormy and long Covid zero policy.
The National Statistics Office said on Wednesday that the average inflation year-to-date consumer price growth was just 0.5%, well below the government’s average inflation rate target of 3% for 2023. exports in July they suffered their biggest drop in more than three years, with a 14.5% drop compared to the previous year
A few weeks ago, faced with a bleak outlook with the property market in continuous decline and reduced export demand, the leaders of the Asian giant met to draw up a plan, starting with committing to launch policies to stimulate consumer spending.
“The recovery from the pandemic is being tortuous. It is necessary to actively expand domestic demand and expand consumption by increasing the income of residents,” the Chinese Politburo bosses acknowledged in a statement. “It is necessary to boost the consumption of automobiles, electronic products and home furnishings, and promote the consumption of services such as sports, leisure and cultural tourism.”