A lot is going on in China. The economic giant is at the brink of collapse, as it faces a new virus, a trade war, and unemployment issues. This year is crucial for them as it marks the conclusion of the government’s 13th Five-Year Plan. The plan was aiming to end poverty. However, now, with all these resurfaced problems, it is becoming much harder to carry out. The government is trying to reduce the existing economic chaos. The Chinese state is currently making rate cuts that will hopefully fuel more bank lending and make tariff reductions, which might help the overall situation with the rising prices.
The government plans to create 11 million new jobs annually. However, with the current situation, it is questionable whether the government will manage to fulfill its plans. Over the last several years, China’s official unemployment data has barely budged. It is hovering between 4% and 5%.
Experts say that the country could face massive unexpected economic events.
China’s economy hits a new low and social unrest rises
The data from the National Bureau of Statistics has shown that the Chinese economy grew by 6.1% in 2019, marking it the slowest growth for 29 years. The domestic demand is weakening each day, and the government is frantically trying to balance the situation and boost growth. Social unrest is rising, as people are unpleased with an increasingly competitive labor market or the soaring cost of housing.
In Q4 2019, Industrial production expanded by 5.7% last year. It was lower than the 6.2% figure in 2018. China’s GDP growth didn’t move past 6.0% from the previous quarter. Unfortunately, it matched the lowest quarterly growth on record.
Experts also suggest that 2020 is going to be difficult, as the most difficult issue might be mass unemployment. This economic issue might eventually become a political one.