The Chinese Government created an economic recovery plan, but it seems that the recovery process has slowed down in the past months. The main reasons could be the COVID-19 outbreak and the higher prices of raw materials. The economic uncertainty is not good news for the world’s second-largest economy. At the beginning of the year, China had a modest economic growth target (less than 6%), but financial analysts were more positive and thought the growth would be around 8%.
January was a good month for China.
Reports showed that between January-March this year, China had an 18.3% economic growth, but the economy started to slow down at the beginning of the summer. Recent articles mention that last month and the current one registered a slower economic growth, but the numbers are not below what was predicted.
What could be some explanations?
Some possible explanations could be the COVID-19 crisis, higher cost for raw material, pollution controls, industrial activity and shortage of materials. It is essential to understand that the Chinese economy is still growing and that the recovery plan was a strong one, and it still works. Just because things have slowed down, it does not mean economic recession. Experts also talk about unemployment, and articles mention that urban unemployment has remained the same since May, 5%. Even so, more young people are unemployed, and this puts a lot of pressure on authorities. In 2021, China has 9.1 million university graduates, which means that they will not take any job available if it does not match their criteria.
The COVID-19 crisis in China
Yesterday, the Chinese Government announced that 1.4 billion doses of COvid-19 vaccines were administered. China’s population was in 2019 of 1.398 billion people, which means that at least half of the population has received at least one vaccine shot.