China’s GDP growth was lower than expected
News about the Chinese economy is important in several ways. It is the second largest economy in the world, and China is a huge hub. Many people believed that the Chinese economy would finally recover from the restrictions imposed on China that had lasted for several years. Since December, the pressure on people and the economy has eased. The data shows that the economy It increased by only 0.8 percent compared to the previous quarter. That’s a big step back from the 2.2 percent rate in the first quarter. In addition, another dangerous factor should be mentioned.
Tension and dispersion in Taiwan
Recently, there have been serious disagreements between Taiwan and China. Tensions rose with the intervention of the United States. In recent months, there has been the possibility that China could launch its attack on the island nation in the near future. According to some analysts, China can also distract from its poor economic performance with conflict. Some believe that disappointing economic data increases the chance of conflict between China and Taiwan. They see the greatest opportunity for a Chinese attack between 2025 and 2027. In 2027, Xi Jinping is expected to serve his fourth term as president. According to some experts, if he could not show any results in the previous three, he might look for other opportunities to prove his glory.
More on GDP data
Over the past three decades, China’s growth has fundamentally changed the global economy and generated new demand. However, the pace set at the beginning cannot be maintained forever, and this has been shown in recent years. The country’s growth rate was really marked by the pandemic period.
This quarter, the country’s economic growth was lower than expected due to weak domestic and international demand. The annual growth rate of 6.3 percent shown in the second quarter was well below the expected growth of 7.3 percent. China is in a difficult situation. The country will need to tackle the unemployment rate and strong stimulus measures. This, in turn, can lead to increased debt risks and structural distortions. Monday’s data, which showed a sharp slowdown in consumer spending and volatile business confidence, reinforced the notion that growth has already run out of steam. According to economists, China’s 5% growth target set for this year is in jeopardy.
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