Posted on Jun 5, 2023
Is China heading for Japan-like stagnation? Economist says the worst is likely behind us
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"Japan’s economy grew rapidly in the 1970s and 1980s, only to stagnate when the bubble burst in the 1990s and stock and real estate prices plummeted. Japan was the world’s second-largest economy for decades, until China overtook it in 2010."
Is China heading for Japan-like stagnation? Economist says the worst is likely behind us
Posted from cnbc.com
China
Economy
Japan
Posted 12 mo ago
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LTC Eugene Chu
..."China’s recent economic data largely disappointed investors hoping for a sharp rebound in the world’s second-largest economy after the end of Covid controls in December. Youth unemployment hit a record high of above 20% in April.
In a report Friday, Hu attributed the recent economic slowdown to a “premature” withdrawal of policy support after better-than-expected first quarter data.
Chief China economist, Macquarie
Going forward, he expects policymakers to remain accommodative given the lack of inflation and high youth unemployment — with more urgency to ease as year-on-year comparisons soften in the third quarter.
“As the recovery broadens over time, the economy will enter another upward spiral with stronger demand and better confidence,” Hu said.
At a meeting Friday, China’s top executive body, the State Council, called for improving the business environment and removing local barriers to market access, according to state media. The country would also extend purchase incentives for new energy vehicles as a way to boost consumption, state media reported.
The meeting, led by Premier Li Qiang, noted the foundation of China’s economic recovery is not yet solid."...
..."China’s recent economic data largely disappointed investors hoping for a sharp rebound in the world’s second-largest economy after the end of Covid controls in December. Youth unemployment hit a record high of above 20% in April.
In a report Friday, Hu attributed the recent economic slowdown to a “premature” withdrawal of policy support after better-than-expected first quarter data.
Chief China economist, Macquarie
Going forward, he expects policymakers to remain accommodative given the lack of inflation and high youth unemployment — with more urgency to ease as year-on-year comparisons soften in the third quarter.
“As the recovery broadens over time, the economy will enter another upward spiral with stronger demand and better confidence,” Hu said.
At a meeting Friday, China’s top executive body, the State Council, called for improving the business environment and removing local barriers to market access, according to state media. The country would also extend purchase incentives for new energy vehicles as a way to boost consumption, state media reported.
The meeting, led by Premier Li Qiang, noted the foundation of China’s economic recovery is not yet solid."...
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