China's economic growth is recovering again..!?

As China's real estate is falling, the country's import-export, manufacturing, and banking sectors have been affected. Even as china recovers from its economic crisis, reports that its real estate situation is still dire could be sweet for the U.S., if that worries its people. China's economic crisis started after the covid hit. The virus that has turned the economy upside down has eroded the real estate sector, which is a strong pillar of the Chinese economy. Rising unemployment and an aging population in china have weighed on the country's economy. Foreign companies are reluctant to do business with china as the Chinese government increasingly interferes in trade.
Also, foreign investors started pulling money out of china due to the stock market crash. Amidst these various problems, China's economy has started to improve again due to the continuous efforts of the Chinese government. Being the second largest economic power in the world, china is currently facing various economic crises such as slow growth, lack of jobs for young people, and decline in the real estate sector.The chairman of Evergrande Real Estate, China's largest businessman, is under police surveillance and his company has been temporarily delisted from the stock market.Although China's manufacturing and investment have improved since the start of the 2024 New Year, the real estate sector is still sluggish. A report released by China's National Bureau of Statistics on monday indicated that the real estate sector is still underdeveloped. The report said industrial production rose seven percent year-on-year in the last two months, beating analysts' estimates. It is also worth noting that during this period, expenditure on plant and equipment increased by 4.2 percent.
The real estate sector has declined by nine percent compared to the same period last year. Nevertheless, china also believes that the policies announced at China's annual legislative session earlier this month will promote sustainable and healthy growth and real estate. Developers have been asked to build more affordable housing. With china accounting for more than one-third of global economic growth, China's economic momentum bodes well. While this has had an impact on global growth prospects, it is data from the real estate sector that adds to the concerns.

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Sowmiya Sriram

19/03/2024 12:17 PM