China likely suffered another economic slowdown last month

14th Sep,2021

China likely suffered another economic slowdown last month

The current economic downturn may have been worsened by continuous regulatory crackdowns on industries like as education, the internet, and real estate. China's economy likely slowed even further in August, with statistics on consumption, industrial output, and investment expected out on Wednesday that will disclose the full amount of the harm inflicted by the delta variant epidemic. The severity of the slowdown will be keenly monitored for signs that it is significant enough to force policymakers to abandon their existing policy of gradually removing liquidity from markets while maintaining stimulus at a minimum. The current economic downturn may have been worsened by continuous regulatory crackdowns on industries like as education, the internet, and real estate. The statistics released on Wednesday will most certainly reveal that China's recovery is still unequal. In August, strong worldwide demand resulted in record exports, but local consumers were cautious as lockdowns and panic kept many people at home, implying that industrial sales may perform better than retail sales. Here's a rundown of things to look for in the statistics to get a better sense of China's economic performance: The Covid-19 delta form swept across China in August, causing the closure of tourist attractions and some towns over the summer holidays, putting a damper on consumption. China's consumption upswing was not strong even before the breakouts. The services industry's indicators offered a gloomy picture for August, with both official and private gauges indicating the first drop since early 2020. Although China has finally brought the epidemic under control and eased most restrictions, the impact on consumer spending is expected to last for some time, and service provider earnings will take a long time to recover.