While the Chinese government has recently released strong data on the country’s economy, there are signs that the momentum is actually weakening.
While gross domestic product grew 18.3 percent year-over-year in the first quarter of this year, it grew only 0.6 percent from a year earlier, a growth rate that remains very low, according to the Wall Street Journal. Some scholars point out that this growth rate is the slowest in the past decade. The report suggests that China’s economy, although recovering quickly from the new crown epidemic, is now showing a slowing trend.
Liu Aihua, a spokesman for China’s National Bureau of Statistics, also said on Friday that the domestic economy’s recovery is not yet on a firm footing; uncertainty in the manufacturing sector is hampering investment, the rate of migrant workers employed outside the country has not yet returned to what it was before the epidemic, and unemployment among young people is still rising.
Scholars also point out that China’s export growth will begin to slow as factories in other countries return to work. At the same time, inflationary pressures will create a new obstacle for the Chinese economy.
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