Posted on 09/24/2024 3:32:29 PM PDT by nickcarraway
China unveiled some of its boldest measures in years on Tuesday (Sep 24) aimed at boosting its struggling economy as leaders grapple with a prolonged property sector debt crisis, continued deflationary pressure and high youth unemployment.
The world's second-largest economy has yet to achieve a highly anticipated post-pandemic recovery and the government has set a goal of five per cent growth in 2024 - an objective analysts say is optimistic given the headwinds it is facing.
On Tuesday, central bank chief Pan Gongsheng told a news conference in Beijing that it would cut a slew of rates in a bid to boost growth, pledging to "promote the expansion of consumption and investment". The moves represent "the most significant ... stimulus package since the early days of the pandemic", Julian Evans-Pritchard, Head of China economics at Capital Economics.
(Excerpt) Read more at channelnewsasia.com ...
I have long believed that Red China is in rougher economic shape than generally believed. Communist parties have never rewarded frank honesty, and I suspect that economic data has been optimistically presented at each level.
Since Chairman Deng and his peers loosened Party control of the economy, the economy rapidly expanded simply from the pressure and desires of a billion people who were denied anything but a basic existence. However, that natural economic spring has settled into equilibrium and the inherent corruption and inefficiencies of central planning are now having a perceptible impact upon the economy.
Party policies, to include the one-child policy, are having real impacts upon economic potential. This stimulus effort reflects what appears to be a real economic crisis.
The article notes that Red China has the second largest economy. However, the mainland has four times the population of the U.S., the largest economy. The economy has slowed down at the point where they are still only 25% of our per capita economy.
By the way, their current population is probably grossly exaggerated.
F the CCP
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.