Economy of China: Recently, according to a report by the National Statistics Bureau (NSB) of China, the country’s annual GDP (GDP) growth has fallen by three percent. At the same time, it is much less than the estimated target of 5.5 percent in 2022 last year. According to the Financial Post, due to the decline in China’s GDP, there may be a recession in the world.
Liu He, Vice Premier of the People’s Republic of China, told about the problems facing China and the global economy at the World Economic Forum in Davos 2023. At the same time, the growth rate in China last year was the worst recorded since 1974. China’s growth rate in 1974 was 2.3 percent. Similarly, if China’s economy continues to decline, recession is bound to come. The effect of this recession will not only be on China but also on 70 countries of the world.
Covid-19 created a crisis
The Kovid-19 (Covid-19) epidemic in China had completely affected the country’s growth rate. According to the speculation published in October 2022 by the International Monetary Fund (IMF), China’s GDP growth rate was low. According to the IMF forecast, the GDP growth rate was expected to be around 4.4 per cent. According to the Financial Post, in the year 2021, a growth of 18 trillion was registered in the US dollar, which was much higher than the Chinese currency.
China in middle class income stage
Economic experts had already told that China has fallen to the middle class income stage. Because of this, it may be difficult for the country to achieve 10 percent GDP growth in the late 1980s. Kim Byung-yeon, a Chinese author and professor of economics and head of the Institute for Future Strategy at Seoul National University, argued that the Chinese economy has entered the list of middle-class income countries.
According to Kim, in the case of China, the productivity which determines the long-term growth rate has come down sharply. At the same time, people have started losing their jobs in many cities of China. Many companies are withholding the salaries of the employees. Many people are seen protesting on the streets with banners in their hands demanding salary payment.
