China: Beijing’s recent efforts to control price wars may help alleviate deflationary pressures, but analysts caution that these measures do not adequately tackle the deeper structural issues facing the world’s second-largest economy. This warning comes as the Chinese economy continues to struggle with ongoing structural challenges. Excess capacity in various sectors has kept both producer and consumer prices low, while job insecurity and a prolonged downturn in the property market have made households hesitant to spend. Declining investment returns, increasing pressure on income and employment, and external challenges impacting prices have exacerbated deflationary risks. The trade conflict with the United States is expected to have a “lasting impact on China’s medium- to long-term economic fundamentals” and could further exacerbate the country’s “involutionary” dynamics.
- Lord, we pray that the leaders in China seek divine wisdom in implementing policies that will truly address the structural issues in the economy. May they find effective solutions that bring stability, encourage spending, and foster growth for businesses and families alike (The Holy Bible, Proverbs 2:6).
- Lord, we pray for all households affected by economic uncertainty and job insecurity. May they find hope and resilience during this challenging time, and may community support systems be strengthened to help those in need navigate through these hardships (The Holy Bible, Proverbs 10:4).
News Source: South China Morning Post
Image Source: Canva
