{"id":13013,"date":"2023-09-12T06:30:07","date_gmt":"2023-09-12T06:30:07","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=13013"},"modified":"2025-04-23T09:06:14","modified_gmt":"2025-04-23T09:06:14","slug":"eight-charts-that-explain-the-chinese-economy-in-2023","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/eight-charts-that-explain-the-chinese-economy-in-2023\/","title":{"rendered":"Eight charts that explain the Chinese economy in 2023"},"content":{"rendered":"

So just what is the current state of the Chinese economy? Kenrick Davis, CBBC\u2019s London based Senior China Policy Analyst, takes a more detailed look at the numbers shaping the country in 2023, and asks just how bad the situation is…<\/h2>\n

The takes on China\u2019s economy from media and analysts in 2023 comes across like a Dickens reading list: there have been Great Expectations, ample descriptions of Hard Times, and now \u2013 to stretch the wordplay a little \u2013 many pessimists are calling it a Bleak House.<\/p>\n

But is everything really doom and gloom? This article will take a closer look at the course China\u2019s economy has taken so far in 2023 through a selection of eight charts.<\/p>\n

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Gross domestic product<\/h4>\n

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China\u2019s disappointing GDP growth so far has been blamed on many factors: poor domestic and international demand, a property market slump, low consumer confidence and geopolitical tensions. Nevertheless, National Bureau of Statistics spokespeople have rightly pointed out that China\u2019s GDP grew an aggregate 5.5% year-on-year in the first half of 2023 \u2013 making it the fastest-growing among major economies. But despite the NBS\u2019s bullishness, many financial institutions have lowered their GDP growth predictions for the remainder of 2023. Economists polled by Bloomberg have cut their estimates from 5.2% to 5.1%.<\/p>\n

Inflation<\/h4>\n

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China\u2019s falling CPI is mostly due to low consumer demand and confidence \u2013 which stems from the poorly performing property sector<\/a>, general economic malaise, and the damage caused by years of severe pandemic controls<\/a>. Instead of the \u201crevenge spending\u201d that had been predicted, Chinese consumers have been locking up their savings while waiting for the economy to improve. The country\u2019s low PPI, on the other hand, is due to weak domestic<\/a> and global demand for Chinese goods and materials. It\u2019s also due to a higher base for comparison because global commodity prices soared after Russia\u2019s invasion of Ukraine in 2022.<\/p>\n

The resulting deflation has the effect of delaying many consumers\u2019 purchases and investments \u2013 especially in houses, cars, and travel \u2013 as they wait for prices to stop falling. Deflation also increases the real value of debts. However, there are reasons to believe China\u2019s deflation may be temporary. July\u2019s fall involved one-off factors such as the price of food, particularly pork prices. The same month, China\u2019s \u201ccore inflation\u201d \u2013 or inflation without volatile items such as energy and food \u2013 actually rose from 0.4% to 0.8%. Analysis by BNP Paribas also suggests that China\u2019s economic fundamentals do not meet the typical conditions for lasting deflation, including a contracting money supply, significantly flagging demand, and a consistent loss in confidence.<\/p>\n