China’s Slowed Exports
One of the most vital parts of the Chinese economy is trade, and this stems from the strong manufacturing sector that the nation possesses. Unfortunately, this pillar of the economy is starting to weaken along with global trade. Chinese exports declined in the month of October, an unexpected result as consumers and businesses reduced spending. Demand for Chinese goods has decreased as many cope with the problems of inflation, and this is having a major impact on the economy. As we discussed last week, the real estate sector of China is in shambles right now due to debt crises that have flooded property companies, and this is already promoting a weak Chinese economy. The lockdowns have not done much to help, slowing economic activity in China.
Because of this, analysts from the IMF expect global economic growth to expand by 3.2 percent this year and slow down to 2.7 percent next year. Shipping costs have decreased by a solid amount, which is positive, but a moody economy has caused many countries to hold back. South Korea and Taiwan saw their exports slow down as well, and they provided the world with some of the most important appliances and semiconductors. Trading in the Pacific seems tough, and it’ll be important to see what President Xi does to acclimate to the situation. China wanted their economy to grow by 5.5 percent this year, but that is nowhere close to being achieved as this will go down as one of the worst years of growth in decades.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
