• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»World»China Economy Slips Into Deflation As Post-Covid Recovery Falters
World

China Economy Slips Into Deflation As Post-Covid Recovery Falters

August 9, 2023No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
NDTV News
Share
Facebook Twitter LinkedIn Pinterest Email

China slipped into deflation for the first time in more than two years in July, official data showed Wednesday, as slowing domestic spending weighs on the post-Covid economic recovery.

The reading comes a day after news that the country suffered its biggest fall in exports since the early days of the pandemic, while imports tanked again as domestic and global demand fall away.

The Consumer Price Index, the main gauge of inflation, fell 0.3 in July, the National Bureau of Statistics said, having flatlined in June.

While it was marginally better than the 0.4 percent decline forecast in a survey by Bloomberg, it marked the first drop since the beginning of 2021 and will add to pressure on authorities to provide much-needed support to the economy.

Deflation refers to falling prices of goods and services and is caused by a number of factors, including waning consumption.

And while cheaper goods may appear beneficial for purchasing power, falling prices pose a threat to the broader economy as consumers tend to postpone purchases in the hopes of further reductions.

A lack of demand then forces companies to reduce production, freeze hiring or lay off workers, and agree to new discounts to sell off their stocks — dampening profitability even as costs remain the same.

China experienced a short period of deflation at the end of 2020 and early 2021, due largely to a collapse in the price of pork, the most widely consumed meat in the country.

Prior to that, the last deflationary period was in 2009.

See also  Influencer Andrew Tate's Detention Extended By Romania

Many analysts fear a longer stretch of deflation this time around, as China’s main growth engines stall and youth unemployment is at a record high of more than 20 percent.

Ongoing turmoil in real estate, a sector that has long accounted for a quarter of China’s economy, is the “main source” for this “deflationary shock”, said economist Andrew Batson of Gavekal Dragonomics.

Deflation is also being driven by flagging exports — historically a key source of growth for China, he added.

‘Cause for concern’

Tuesday’s worst-than-expected drop in exports had a direct impact on tens of thousands of export-oriented companies in China, which are now operating at a much slower pace.

“The latest Chinese inflationary data did little to inspire confidence that an economic turnaround is forthcoming,” Tim Waterer, chief market analyst at KCM Trade, said in a note.

“The inflation data… was further evidence that China remains a cause for concern from a global growth perspective,” he added.

Meanwhile, the producer price index fell 4.4 percent in July — slightly better than June’s 5.4 percent fall but marking the 10th consecutive month of contraction.

The index measures the cost of goods leaving factories and gives an overview of the health of the economy.

Declining producer prices mean reduced margins for companies.

The grim data suggests that China may struggle to achieve a five percent growth target set for the year.

The world’s second largest economy only grew 0.8 percent between the first and second quarters of 2023, according to official figures.

And many economists are now calling for a vast recovery plan to boost activity.

See also  UK Govt Aimed to Use 'Fear/Guilt' to 'Frighten' Public Into Locking Down

But for the time being, the authorities are sticking to targeted measures and declarations of support for the private sector — with little in the way of tangible steps.

Still, Wednesday’s poor numbers may “put pressure” on the government to reconsider, economist Zhiwei Zhang of Pinpoint Asset Management suggests.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Featured Video Of The Day

How Big Is The Chinese Propaganda Threat?

China deflation Economy falters PostCOVID recovery slips
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trump’s Tariffs Trigger Turmoil In China As Country’s Economic Tailspin Intensifies Per New Data

May 6, 2025

American Manufacturers Overwhelmed With Orders After Trump’s Tariff Crackdown On China

May 5, 2025

Trump Closes Tariff Loophole That Let China Flood America With Knockoff Goods, Drugs

May 2, 2025

China Erupts: Furious Workers Riot As Factories Collapse Under Trump’s Tariffs

May 1, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

China VC deals plunge, on track for worst pace in more than seven years

September 18, 2023

Top moments where fans showcased their fandom for cricket

May 25, 2023

Trans Athlete’s US Cycling Win Within Rules, UCI Says

May 6, 2023

Anheuser-Busch is selling off beer brands as Bud Light catastrophe continues

August 9, 2023
Don't Miss

Short and Funny Sayings for a Happy Summer with Friends

Lifestyle May 9, 2025

I love the beach. Just looking at the calming sea to relax. Having fun in…

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,627)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

‘Creed III’ Debuts to $58.7M, Nearly Doubles Expectations

March 13, 2023

Osasuna, Facing Real Madrid in Copa del Rey, Is a Model Club

May 6, 2023

Adam Schiff Says Trump’s Interviews Are Music To Jack Smith And Fani Willis’s Ears

September 18, 2023
Popular Posts

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.