China’s Efforts to Cover Up Economic Crisis Exposed by Predictive Data
The Singapore Post reported that while data on employment and GDP suggest a crisis in China, the country is still attempting to present a positive image on international forums. According to the report, China’s economic growth dropped from 3.9% in the third quarter to 2.9% in the fourth quarter, resulting in an annual growth rate of only 2.2% in 2022, the second lowest since 1976 and 2020 when the country was affected by the economic impact of Covid-19.
The figures from the National Bureau of Statistics reveal that retail sales dropped by 1.8% in December 2022 compared to the previous year. According to a report by The Singapore Post, the country’s overall retail sales have decreased by 0.2%. Additionally, the unemployment data is not positive.
The unemployment rate in urban areas was at 5.5% in December of last year and the unemployment rate for 16 to 24-year-olds remained high at 16.7% in December, down slightly from 17.1% in November. This is surprising considering China’s claims of creating 12.04 million jobs in the past year.
In contrast to the efforts of experts in the country to conceal it, the Singapore Post reported that Vice-Premier Liu He spoke at the World Economic Forum (WEF) in Davos and stated that the economy will quickly recover. He confidently stated that in 2023, China’s growth is expected to return to its usual trend and the Chinese economy will see significant improvement. China is determined to regain its pre-Covid levels of international trade and not be hindered by any isolationist or inclusivist policies from developed and developing countries.
At the Davos platform, the Vice-Premier defended President Xi Jinping’s Zero Covid policy and stated that the economy had not suffered greatly due to strict lockdowns. The outbreak in China was caused by a sudden surge in Covid cases after the Zero Covid policy was lifted, which was unexpected.
The Vice-Premier urged the Forum to take notice of the detrimental impact that interest rate increases in major countries can have on emerging markets and developing countries, in order to avoid further debt and financial risks. He stated that they are willing to work with all parties to find solutions to the debt issues of some developing countries.
It was not clear if he was referring to his country’s BRI project, as there are suspicions that China uses it to expand its influence globally, as mentioned in the report. The report also stated that US treasury officials and the Chinese Commerce Ministry both expressed their desire to discuss macroeconomic developments and enhance macroeconomic and financial policy coordination between the two countries.
