Rising youth unemployment in China has fueled fears that the world’s second-largest economy is headed for a devastating slowdown. Now Beijing has found a solution: it will stop publishing the numbers.
The National Bureau of Statistics on Tuesday said it would stop releasing unemployment data by age group this month after China’s youth unemployment rate (ages 16 to 24) soared to a record high of 21 in June, 3 percent. Some experts believe that in fact it is even higher.
Chnya is struggling to return to normal economic life after the slowdown caused by the COVID-19 pandemic and its associated paralysis. Broken supply chains and the stagnation of certain sectors of the economy are still reflected in disruptions. The numbers show that the sharp rise in youth unemployment is just one of many indicators of China’s economic woes.
Consumption remains sluggish: Official statistics released last week showed that consumer prices fell 0.3% over the past year after stagnating for months, heightening the threat of deflation.
Chinese real estate market.
Meanwhile, the real estate market, which accounts for 30 percent of China’s GDP, is teetering on the brink of collapse. The largest private developer in the country for the first time tried to delay the payment of a private land mortgage.
Shortly before the release of data on Tuesday, Beijing’s central bank cut key interest rates for the second time in three months to stimulate economic activity.
Chinese currency is losing
The latest data show that Chinese exports fell by 14.5%. y/y imports by 12.4%. y/y The pandemic-related ‘boom’ in China’s export sector is picking up impressive pace. On the one hand, it comes at a bad time as it coincides with weak domestic demand, amplifying and exacerbating the negative economic impact. On the other hand, this does not bode well for the Chinese currency.
The weakening of the yuan helps to increase the price competitiveness of Chinese exporters in the world market and may mitigate the slowdown in exports to some extent. However, a marked depreciation of the yuan could further exacerbate the trend of domestic private capital to leave China.
Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
