China GDP to reveal bleak growth after covid lockdowns

China GDP to reveal bleak growth after covid lockdowns


FUZHOU, China – China is due to report on the second quarter of the financial crisis, raising concerns about the global economic downturn, after the closure of coronavirus in major cities disrupted business and daily life.

The world’s second-largest economy is set to collapse in three months ending June, experts say, although Beijing shows little growth.

“The government does not approve of the downturn,” said Max Zenglein, an economist at the Mercator Institute for China Studies. He added, “Some growth is from zero, at which point the official people would not believe it.”

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The slow decline is a bitter reversal of China, which last year was leading a major economic recovery in their recovery from the epidemic. Since then, countries like the United States have reopened more openly. But Beijing’s leaders have increasingly resented their “zero covid” approach to solving any problem through crisis, saying many will die if China lifts sanctions and reopens them.

This approach has been very controversial and costly. The advent of more and more species this year has resulted in longer delays and greater closure is needed for epidemics to occur. The two-month closure of China’s most populous city, Shanghai, was devastating.

Last week, Chinese Prime Minister Li Keqiang visited the coastal city of Fuzhou to meet with officials from the Southeast industrialization sector to stabilize the economy. According to Xinhua News Agency officials, Li said things had gotten worse and called on officials to restructure the economy to “go backwards.”

State media footage showed Li at a rally in Fuzhou where no one wore a mask, one of the most iconic appearances he has ever made. This has been interpreted by some as a signal of Li’s immediate return, as his boss, Chinese President Xi Jinping, has announced that the country continues to commit itself to “zero covid.”

Shanghai fears a second close as China battles BA.5

Repeated closures have reduced the economy in recent months, leaving many people unemployed and unemployed, especially in the labor industry. The unemployment rate for 16- to 24-year-olds in cities reached 18.4 percent in May, the highest since Beijing launched its 2018 campaign.

In April, not a single car was sold in Shanghai, 25 million city dwellers live in their homes.

“China’s economy is in serious danger,” said Tianlei Huang, a researcher at the Peterson Institute for International Economics in Washington. “Consumer demand is very low.”

Huang said he expects China to drop its economic growth target by 5.5% year-round due to the closure crisis. About 4 percent would be very honest, he said.

“Even if things do not go well, China will not be able to achieve its goal of year-round growth,” he said.

The alarming figure is much larger than a decade ago, with China posting an increase of near or more than 10 percent.

The closure has disrupted industrialization, overcrowding and delays in shipping goods worldwide. The food crisis has been the driving force behind rising US prices, which have risen to 9.1 percent. Consumer prices in China are only up 2.5 percent due to frustration.

Shanghai began reopening in early June, but the arrival of the BA.5 coronavirus threatens a new closure. The northwestern city of Lanzhou has placed four of its districts under a seven-day closure. Shanghai returned some homes to close, and ordered millions of people to be re-tested.

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“China’s economy in the second half of 2022 is facing uncertainties from time to time due to a new covid explosion,” said Shang-Jin Wei, a professor of economics at Columbia University. “If the economic downturn in the US or Europe, it will add to the crisis in China.”

Huang said foreign investors are “voting with their feet” in changing productivity to other countries due to economic uncertainty. “The recent negative impact of foreign traders may not only be loud for a short period of time but may have long-term consequences,” he said.

Meanwhile, there are signs of problems in the Chinese housing market. An increasing number of homeowners are refusing to repay loans on unfinished projects, Bloomberg News said this week, citing financial analysts, a worrying sign for banks and the ruling Communist Party ahead of key collapse leadership meetings.

China only acknowledged that its economy was booming in the first quarter of 2020, when it began to fight coronavirus. Since then, nationals say they are growing every quarter.

Independent economic analysts take what the Chinese government says as a major factor, although the accuracy of the figures is not guaranteed. Li, the Prime Minister, once called China’s “man-made” and “mean” figures at a secret meeting, according to a US embassy report released by WikiLeaks.

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