What is the economic future of China?

The bank expects China’s economy to grow 4.8\% in the third quarter of 2021 compared to a year ago, and 3.2\% in the fourth quarter. Previously, Goldman’s forecasts were 5.1\% and 4.1\% for the third and fourth quarters, respectively. China said its economy grew 7.9\% year-on-year in the second quarter this year.

What are the most serious economic problems facing China?

The painful slowdown comes as China grapples with debt concerns, shipping disruptions, and ongoing electricity shortages. The country’s real estate crisis is at the core of most of these problems. The industry has $5 trillion in debt, with multiple firms in trouble, affecting much of the Chinese economy.

Is Chinese economy slowing down?

The slump could last into next year, forcing growth below 5\%, they warn. Data released last week already showed a sharp slowdown in growth to 4.9\% in the third quarter from 7.9\% in the previous quarter, with more pain likely to come as electricity shortages persist.

Is China’s economy slowing?

China’s slowdown amid real estate, energy crisis China’s economic growth has slowed as a major energy crisis hits production, dragging down industrial activity. At the same time, real estate giant Evergrande and its debt burden remain in the spotlight as the government tries to deleverage the sector.

Is China’s economy slowing down?

However, in recent years, there have been concerns the rapid rate of growth in China is beginning to slow down and over the next few years, economic challenges could lead to a slowdown and even recession. What are the challenges that the Chinese economy faces?

What does China’s economy depend on?

China’s economy depends on the policies set by the central government to an extent that few other economies do. The government’s formal and informal signals give firms and people their cues on everything, from which businesses to start to where to invest. If Beijing were to continue restraining credit growth, true economic pain could set in.

Is China’s economic growth sustainable?

Chinese growth may not be healthy or sustainable, but there is little risk that it will stop. When a recession strikes a democratic country, voters can kick out the governing party. In China voters have no such option, which means that a recession could topple the entire regime.

Is China’s Global 500 vulnerable to a major economic slowdown?

The implication is clear: With a few exceptions—notably Huawei and Lenovo, which generate 50\% and 75\%, respectively, from sales in foreign markets—the great majority of the Chinese companies on the Global 500 would be vulnerable to a major slowdown in the domestic economy. And a slowdown is inevitable, we believe.