China's rate of growth seems to be falling. Despite the opaque nature of Chinese economic reports, it looks as if China's self-imposed COVID-19 lockdowns are seriously affecting economic growth.
This article makes the following points:
- Unprecedented economic growth has enabled China to become a global economic, political and military powerhouse.
- China's current strategies to control COVID-19 by forcing major financial and manufacturing centres into full or partial lockdowns have affected economic growth.
- China's Gross Domestic Product (GDP) has fallen by 2.6% from the previous quarter.
- GDP fall was worse than expected.
- However, unemployment fell to 3.5%, and retail sales outperformed expectations.
- Many analysts do not expect a quick economic recovery for China as the government continues with its strict zero-Covid approach to slowing the spread of the coronavirus.
- China's financial woes are further exacerbated by the collapse of China's once booming property market.
- Governments use GDP to guide decisions on spending, and in China's case, it will be interesting to see whether China's current slump is likely to effect military expenditure.
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Source Information BBC