Posted on 12/26/2023 6:37:46 AM PST by davikkm
The recent decline in China’s Shanghai Composite Index, plummeting below 2,900 and marking a 15% drop from its April peak, raises concerns about the nation’s structural challenges. This significant 28% performance gap when compared to the MSCI World Index (USD) since April underscores a deeper issue at play.
While psychological explanations for economic conditions are frequently invoked, the assertion that structural explanations carry more weight appears justified. The current consensus in China – weak consumption linked to low confidence, and vice versa – highlights a potentially troublesome feedback loop that a surge in confidence alone may not fully remedy. Analysts argue that a sustained post-Covid recovery in China necessitates a real redistribution of income, focusing on tasks such as easing unemployment pressures and fostering public wealth growth prospects.
(Excerpt) Read more at citizenwatchreport.com ...
Experts expect China’s economic growth will slow in the coming year to 4.6%, following a predicted 5.2% expansion this year, amid a slump in the real estate market and stagnant consumption.
https://asia.nikkei.com/Economy/China-economists-expect-slower-4.6-growth-in-2024
They’ll be fine. They just need more central planning.
Wherein the CCP learns that annihilating the Western economies with a manufactured virus does not necessarily mean you own economy does better.
Biden is kicking their ass!
If they had an amazing Federal Reserve like we did they could just print money to fix this.
;-)
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