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Beijing [China]Oct. 20 (ANI): China has delayed the scheduled release of third-quarter economic data during the ongoing 20th Congress of the Communist Party of China (CCP), sparking immediate speculation of a slowdown in its GDP growth rate.
There was no explanation as to why the data was not released as planned on Tuesday. As well as headline GDP figures, the figures should include details on monthly industrial output, energy production, fixed asset investment, property investment and sales, retail sales and house prices, according to the Sydney Morning Herald (SMH).
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The obvious conclusion is that if the numbers are released while he is being asked to approve his third term, they could embarrass Xi Jinping, leading to an unprecedented extension of his tenure as party leader.
GDP growth this year is estimated at between 3% and 3.3%, SMH reported, unlikely to please party leaders.
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The International Monetary Fund forecasts China’s economic growth rate to be 3.2% in 2022. The reasons for the decline in China’s economic growth rate are well known.
The main one is Xi Jinping’s draconian zero-coronavirus policy, with China’s major cities and industrial centers in near-continuous lockdowns. In the second quarter, Shanghai’s prolonged lockdown was a major factor in the economic stagnation, SMH reported.
The real estate crisis, sparked by Beijing’s imposition of hard limits on the leverage of property developers, has led to implosion by developers, debt defaults and a slump in house prices and sales​​.
There was a spillover effect on other industries that depended on the real estate sector, with a general revolt from mortgagors who borrowed money to buy apartments before they were built and now find themselves in debt but without apartments. Local governments, which depend on property sales for most of their revenue, are also under pressure.
Unemployment among 16- to 24-year-olds edged up by 20 percent, more than doubling during Xi’s current five-year term.
Chinese consumers are turning cautious, retail spending has slumped and an economic slowdown in the rest of the world is threatening its exports, SMH reported.
For the first time in living memory, China’s economy has grown at a slower pace than other emerging economies. It’s not great.
A confirmation of weak growth in the middle of the congress to confirm that Xi Jinping’s coronation will add an unpleasant note to the celebrations. It could also lead to skepticism about Xi’s prospects of delivering on his promise (reiterated on Sunday) to develop China to the point where it would be classified as a “moderately developed country” by 2035, SMH reported.
Given all the headwinds facing the Chinese economy, and Xi’s continued commitment to a rigorous response to the coronavirus outbreak, it’s perhaps unsurprising that any negative news about the state of the economy will be delayed until the congress is over and his continued leadership is confirmed. (ANI)
(This is an unedited and auto-generated story from the Syndicated News feed, the body of the content may not have been modified or edited by LatestLY staff)
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