Talking about debts without discussing about assets is the problem for these kinds of articles. Many local government holds a lot of profitable assets and many wealthy provinces and cities which have no problem serving their debts actually have big shares of the debt pile.
Chinese Economics Thread
- Thread starter Norfolk
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Partially from covid lock down and economic outlook, young Gen-Z is abandoning pricey traditional overprice "brands" and buying more affordable domestic brands. "Expert" think this is temporary, but it is probably a good time for Chinese brands to take out their western with counterparts with quality and build up the value of their brand.
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What's really important is that China hit that number even with property investment declining by 9.1%. That means that GDP growth could easily be higher if the CPC wanted but instead they remain committed to the overarching goal of deleveraging the property sector
That's really good if it can somehow compensate declining property sector investment with increase in other areas. Keep it up for a few more years and the economy will be much stronger, healthier, and built on the stable foundations of high quality development.
So 5.2% growth year to date. Seems like it's a mere formality for the full year growth to exceed the 5% target given last year's 4th quarter was wrecked by the sudden reopening.
to be fair last year's growth numbers were terrible, getting to 5% was always a very attainable goal, or it would not have been a target that the Chinese government had set out to achieve.
but yes to be able to keep the economy churning at the current rate, with international trade stagnating and property prices imploding, does seem to show that the economy is growing in the places that the Chinese government wants...ie manufacturing, consumer etc. i think that is the real good news not just the fact that they hit 5%.
As expected the recovery in the services sector after the lockdowns is giving the economy support. But real estate and local government spending will continue to drag on growth going forward.