Chinese economy would grow by an average of 5.3 percent this year. That is roughly in line with the International Monetary Fund’s forecast of 5.2 percent.
“Europe and the United States continue to contribute to the continuation of the war.” As a result, they must gather around the table and declare, ‘That’s enough.'” While in China, Lula accused Washington of “encouraging” the conflict by supplying Ukraine with weaponry. He also slammed the dollar’s dominance in global trade, urging the creation of a new currency for transactions between the BRICS nations of Brazil, Russia, India, China, and South Africa.
However, Chinese economy is nonetheless plagued by a slew of other difficulties. Ranging from a debt-ridden property sector to dwindling consumer confidence, global inflation, and the possibility of recession overseas.
“The recovery is real, but it is still in its early stages,” said Larry Hu, chief China economist at investment bank Macquarie.
Any recovery “will be gradual, owing largely to consumers’ lack of confidence,” he said. Adding that employers are “reluctant” to hire more workers.
China’s GDP grew by only 3% last year, one of the slowest rates in decades.
It expanded by 4.8 percent in the first quarter of 2022, but growth slowed to 2.9 percent in the final three months of the year.
Property dangers –
A looming property crisis – which, along with construction, accounts for almost a quarter of China’s GDP. Continues to “threaten economic growth,” according to Rabobank analyst Teeuwe Mevissen.
Real estate was a significant engine of China’s recovery from the pandemic’s initial wave in 2020. When Beijing successfully prevented the coronavirus from spreading widespread.
However, low demand has since plagued an industry already beleaguered by declining property prices and heavy debts. Leaving some developers battling to survive.
According to numbers issued on Saturday by the National Bureau of Statistics. The situation appears to have improved significantly in recent weeks as state support helped prices stabilize in March.