Economy

All news and posts of our editorial team on the topic

Economy growing slower than expected
China’s economic growth in the second quarter has fallen short of already pessimistic expectations. As reported by the National Bureau of Statistics of China on Friday, the economy grew by only 0.4 percent year-on-year. Analysts predicted an average growth of between 1 and 1.4 percent. Compared to the first quarter, the economy actually shrunk by […] continue reading →
More infrastructure is supposed to save growth
China's economy has been hit hard by the harsh Covid measures. Nevertheless, Beijing seems to stick to its growth target – and is resorting to old formulas. continue reading →
Insider: Large fund for infrastructure is coming
According to insiders, China wants to boost investment in infrastructure and help the ailing economy get back on its feet with a state fund worth billions. The pot is to be filled with ¥500 billion (a good €70 billion), two people familiar with the plans told the Reuters news agency on Tuesday. The fund is […] continue reading →
Coal as a remedy for a weak economy
The government apparently wants to help the economy by lowering energy prices with cheap coal. Production is expected to increase by seven percent this year, writes AP news agency citing media reports. That is 300 million tons more than last year. This is the second consecutive major increase since 2020. The construction of new coal-fired […] continue reading →
The lockdown threatens the economy
The economic situation seemed shaky even before the Shanghai lockdown. The curfew in the economic metropolis is now bringing all the pent-up fears to the surface. Omicron, the Ukraine crisis and high commodity prices mutually amplify each other and jeopardize growth. continue reading →
Covid variant slows down economy
The latest wave of the coronavirus is putting the brakes on economic development in China. The service sector, in particular, experienced severe setbacks due to the spreading of the delta variant, according to the national Purchasing Managers Index (PMI) published on Tuesday. The index reading, which represents the mood among major and state-owned service companies, […] continue reading →
Xi wants to boost economy
Head of state Xi Jinping is worried about the economic targets for the current year and hints at new economic stimulus measures. This is reported by news agency dpa citing an article in the party’s own “People’s Newspaper”. The central bank could loosen monetary policy again and give out fresh loans. New infrastructure projects are […] continue reading →
Despite low Covid numbers: Consumers remain cautious
The Covid pandemic has permanently changed Chinese consumers' shopping habits. But China's core problem remains: Domestic consumption is not sufficient to reliably support the economy. Even the high growth rates recorded by the retail sector over the recent months are not much of help. continue reading →
Unemployment rate climbs slightly
China has recorded a slight increase in its unemployment rate. It rose from 5 percent to 5.1 percent in July, according to new data from the National Bureau of Statistics in Beijing. While the change may seem minimal, China’s unemployment rate is generally very stable, this makes economists wary of even small swings. Even the […] continue reading →