China Is In DECLINE — Is The Reign Of Terror Coming To An End?

China Falls Behind on Economic Growth Markers

China Falls Behind on Economic Growth Markers

(ReliableNews.org) – The obvious effect of the coronavirus pandemic was the impact on the health of people around the world, but that wasn’t the only consequence of the global crisis. The United States and other countries suffered financially too, as rippling effects of closures, lockdowns, and sickness hit the economy hard. Many places continue to struggle with supply chain issues, price increases, and out-of-control inflation, even as COVID-19 seems to wane. China, for one, may be losing its financial standing in Asia as other surrounding nations exceed its recovery numbers.

The Problem With China

On September 21, Asian Development Bank (ADB) released its economic growth predictions for the region, placing China’s expectations at 3.3% by year’s end. In July, the entity had put the country’s gross domestic product (GDP) growth at 4% — a percent lower than its previous assumption. In the same month, the nation experienced a spike in COVID cases, prompting its leaders to institute restrictions. President Xi Jinping promised to strengthen the economy to hit the region’s intended GDP targets, but the bank seems apprehensive to reflect his optimism.

The ADB painted an uncharacteristically weaker outlook for 2023, setting China’s growth assessment at 4.5%, downgraded from its previous 4.8% prediction.

On the other hand, the institution saw a brighter economic recovery for other Asian countries, putting their expected GDP at 5.3% in 2022 and 4.9% the following year. The experts said this is the first time since 1990 that the emerging markets growth in Asia exceeded that of China.

Reasons and the Future

The entity believes China’s zero-COVID policy is partially to blame for its lagging numbers, in addition to housing market problems and “weaker external demand.” ADB stated the People’s Republic of China (PRC) “remains the big exception” because it insisted on a yo-yo policy of openings and complete shutdowns of the country to try and keep the coronavirus under control. This kept people from working and spending, and created supply chain issues around the globe.

The financial experts pointed out that elsewhere in the region, governments eased restrictions and increased vaccination rates to bring down the death toll within their individual countries. These measures, coupled with the Omicron variant, which seemed less severe, allowed the people to have “improved mobility,” resulting in less of a strain on their respective GDP assessments going forward.

That said, the Asian Development Outlook predicted inflation in the region would continue to increase into 2023 as economies across the continent and the world continue to struggle in recovery.

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