Economic Slowdown of China Explained. China economy economy evergrande crisis china news real estate crisis economy of china china china economy explained economy slowdown economic slowdown 2024. China economic slowdown economic explained Biden India Russia xi jinping China economic crisis china economic growth chinese economy. GDP export resource minerals mines factory industry microchip import china us relations America economic condition of china. The economic situation of china china’s gdp over the years how bad is the chinese economy why china is slowing its economy china economy economics explained china economic crisis explained the future of chinese economy china vs us economy 2024. China has an upper-middle-income, developing, mixed, socialist market economy incorporating industrial policies and strategic five-year plans. It is the world’s second-largest economy by nominal GDP, behind the United States, and the world’s largest economy since 2016 when measured by purchasing power parity (PPP). China accounted for 19% of the global economy in 2022 in purchasing power parity(PPP) terms, and around 18% in nominal terms in 2022. The economy consists of public sector enterprises, state-owned enterprises, and mixed-ownership enterprises, as well as a large domestic private sector and openness to foreign businesses in their system. According to preliminary data released by the authorities, China’s GDP in 2023 was US$ 17.89 trillion with a real increase of 5.2% in 2024.Economy of China The FactsIn a little over four decades, China went from being one of the poorest countries in the world—with a real per capita GDP of only $156 US dollars in 1978—to joining the ranks of upper-middle-income countries with a real per capita GDP of $12,720 in 2022. The growth is particularly striking considering the country’s population size, sweeping territory, and vast heterogeneity.Comparing China’s real per capita GDP to the U.S.’s in purchasing power parity (PPP) terms, which takes into account differences in the two countries’ costs of living, China has grown from 4.1% of the U.S. per capita GDP level in 1990 to 28.4% of the U.S. level in 2022.Economy AnalysisIn an IMF report released in Jan 2024, the global financial policy body – also known as the IMF – projected China’s economic growth would drop to 4.6% in 2024, down from its 5.2% growth in 2023, and fall further to 3.4% by 2028.The property market, which has historically represented about a quarter of China’s GDP, has been a particular area of trouble for the Chinese economy lately, with a Hong Kong court ordering Chinese property giant China Evergrande, mired in more than $300 billion of debt, to liquidate.Also, the same analysis released on Jan 2024 predicted real estate investment will likely fall 30% to 60% in the next ten years relative to 2022 levels.China Economy SlowDownChina’s economic growth is likely to slow to 4.6% in 2024 and cool further to 4.5% in 2025, a Reuters poll showed, raising the heat on policymakers to roll out more stimulus measures amid deflationary pressures and a severe property slump.Gross domestic product or GDP is likely to grow 5.2% in 2023 – meeting the government’s annual growth target, partly helped by the previous year’s low-base effect which was marked by COVID-19 lockdowns, according to the median forecasts of 58 economists polled by Reuters.GDP in the fourth quarter of 2023 likely grew 5.3% from a year earlier, quickening from the third quarter’s 4.9% pace, the poll showed.Consumer inflation will likely pick up to 1.0% in 2024 from 0.2% in 2023, and rise further to 1.6% in 2025, the poll showed.The experts from major banks and institutions see the downturn deepening in the years ahead, predicting 4.4% for 2025 and 4.2% for 2026, amid the ongoing property crisis, weak consumption, and challenges posed by an aging population.The average forecast for the January-March quarter’s GDP growth was 4.5%, on a year-on-year basis. Industrial production in January and February increased by 7% on the year, inching up from 6.8% in December. Thanks to improved production-related indicators, the seasonally adjusted quarter-on-quarter growth rate was 1.2%, slightly up from 1% for October-December 2023. But a bit stronger than the 7.0957 yuan per dollar rate set by the Chinese central bank.The Chinese stock market has performed abysmally since 2022, seeing $2 trillion in losses.China’s aging population is dragging down the growth of the world’s No. 2 economy. Lombard Odier senior macro strategist Homin Lee expects the rate to be 3.9% in 2026, below the 4% mark.
