Along with the slowdown in global trade, the growth rate of Chinese exports slowed in April, confirming the importance of domestic spending as the main driver of the world’s second-largest economy after three years of strict restrictions due to the Covid-19 pandemic, according to the “Wall Street Journal”.
The data pointed to signs of weakness in global trade in the future, along with spending cuts in the US and Europe, the newspaper pointed out on Wednesday.
According to the newspaper, consumers and businesses face persistent inflation amid high interest rates and instability in the banking sector. Many economists expect a slowdown in advanced economies later this year.
A global slowdown means trade is unlikely to play such a major role in driving the Chinese economy as it did in the early years of the pandemic, when Western consumers scrambled to spend big on new computers, gaming equipment and home office equipment. According to the newspaper, they worked long hours from home.
Instead, economic figures point to consumers in China driving growth, as people resume eating, traveling and shopping after years of intermittent shutdowns that affected jobs and daily life.
But many economists question whether the consumer-led recovery is sustainable, citing high unemployment in China, especially among young people, and households wary of being squandered due to excess savings.
After three years of export-led growth, Beijing hopes domestic consumption will lead the next phase of recovery, the newspaper said.
As for the global economy, weak import data released on Tuesday suggested that China’s recovery will be a domestic affair focused mainly on services. This contrasts with the earlier nature of China’s strong growth, which had strong consequences for global demand in terms of raw materials, machinery and energy.
China’s General Administration said on Tuesday that exports from China rose 8.5 percent in April, a weaker pace than a year earlier of 14.8 percent, recorded in March, as Chinese trade rose. Thanks to increased trade with Russia, Moscow’s invasion of Ukraine amid Western sanctions.
“Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator.”
The World Bank raises its global growth forecast for 2023 and cuts it to 2024
Toyota reveals the production process of the GR Yaris in a video
Stock markets receive 2.68 billion dirhams