Britain’s Financial Times newspaper reveals that China’s economy has experienced deflation for the first time since 2021.
Accordingly, the relevant newspaper points out that after the fall in China’s consumer price index, the Chinese economy has become a very risky situation and thus making economic recovery after the Corona epidemic has become a challenge.
Data released today revealed that China’s consumer price index fell by 0.3%. In view of this situation, economic analysts also see that the Chinese government should take steps to use incentives to prevent the occurrence of deflation.
Although the other big economies of the world were working to use economic catalysts during the corona epidemic situation, China was only focused on preventing the spread of the corona virus. For three years, the Chinese government had focused on preventing the spread of the virus instead of the economy.
After reopening China’s economy, the ruling Communist Party had decided to refrain from providing basic stimulus despite lowering interest rates and providing tax breaks to stimulate the economy.
However, with the corona epidemic situation, a significant number of Chinese residents lost their jobs, and the country’s real estate industry also suffered a serious collapse. With that situation, the Chinese people’s working energy and ability to spend money decreased and the deflationary situation was created.
