Growth rate of the Chinese economy: how the surge in GDP will not stop the Chinese crisis | World | News
Despite rising 8.1% during 2021, Chinese government is “under the triple pressure of demand contractions, supply shock and weakening expectations,” says National Bank chief from China. According to data from the National Bureau of Statistics, GDP grew by 4% year on year, or 2.5% less in the same period of 2020.
However, quarter-on-quarter growth improved to 1.6% from a revised July-September rate of 0.7%.
The People’s Bank of China slashed a major lending rate for the first time since April 2020, to cushion a housing downturn and the effect of recurring restrictions as coronavirus cases breach the country’s zero Covid policy.
The country’s strict measures to eliminate all cases of coronavirus, with major cities having implemented closures in recent weeks, have highlighted the continuing weaknesses in consumption.
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The ongoing decline has accelerated a looming demographic crisis that economists say could reshape the country’s economic vitality.
For years, China maintained its notorious “one child” policy for families, but it was scrapped in 2016 and replaced with a maximum of two children per parent.
In 2021, the country’s birth rate was 10.6 million – down from 12 million in 2020 – and is the lowest number since the founding of the People’s Republic of China in 1949.
The number of people aged 60 or younger also fell for the first time, while overall population growth was just 480,000.
The decline and rise in life expectancy that has accompanied China’s economic transformation over the past four decades means that there will soon be a decline in the number of people of working age relative to the growing number of people too old to work.
According to data released on Monday, China’s population grew again last year – but not by much – reaching 1.412 billion.
However, for the first time since the Great Leap Forward era 60 years ago, the number of those who died was remarkably close to the number born, at 10.1 million.
The result could be labor shortages, which could seriously harm one of China’s biggest goals – economic growth.