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World News | China could post trade deficit in 2023: Report

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Beijing [China]Feb 22 (ANI): China is likely to run a trade deficit in 2023, dragging down GDP growth and depressing manufacturing profits and employment, the Hong Kong Post reports, adding that there is a clear message that markets should not China’s economic growth this year is too optimistic, according to comments seen on Sina Weibo, a Chinese microblogging site.

China’s economic recovery is promising after the country’s “zero-Covid” policy ends in December 2022, the report said, adding that deteriorating household confidence coupled with unresolved difficulties in the property sector weighed on the country’s growth rebound.

Read also | Hong Kong will run consecutive deficits, but will provide cash handouts and easy stamps… – Reuters’ latest tweet.

Judging from the preliminary economic data in February, China’s overall economic growth has not yet picked up. Cargo turnover remains lower than a year ago.

Home sales in the country remain below last year’s levels. New home sales were dragged down by a decline in sales in mid-tier cities. Unemployment remains stubbornly high, dampening household confidence.

Read also | Russo-Ukrainian war: India, Ukraine discuss ten-point peace formula.

Some of the country’s banks are taking drastic measures amid the current crisis, including allowing people to pay off their mortgages before the age of 95.

According to the Hong Kong Post, some banks in cities such as Nanning, Hangzhou, Ningbo and Beijing have extended the upper age limit for mortgages to 80 to 95 years old. People in their 70s can now apply for loans with terms ranging from 10 to 25 years.

The Beijing branch of the Bank of Communications has allowed borrowers under the age of 70 to obtain 25-year home loans, which means the upper age limit for its mortgages has been raised to 95.

According to the Hong Kong Post, due to demographic headwinds and declining productivity, China’s economy will enter a downward spiral in the medium to long term.

Although the International Monetary Fund (IMF) expects China’s economy to rebound in the short term, it revised its medium-term growth forecast on February 3, lowering its 2027 GDP growth forecast to 3.8% from its previous forecast. 4.6%.

In its December 2022 report, the Asian Development Bank (ADB) made a longer-term forecast, predicting that China’s economic growth will gradually decline from an average of 5.3% in 2020-25 to an average of 2% in 2036-20. 40.

The Singapore Post recently reported that data on China’s growth is contrary to the image the country is trying to project in international forums. On the one hand, employment and GDP data point to a crisis. But Chinese authorities are still trying to project a positive image in international forums.

China’s economic growth slowed to 2.9 percent in the fourth quarter from 3.9 percent in the third quarter, the report said.

Therefore, China’s annual growth rate in 2022 is only 2.2%. This is the second lowest since 1976 and 2020 when China suffered a Covid recession. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)


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