Covid-19 pandemic destroys China’s economy, growth rate nosedives

Bejing: Even though China is working on the policy of controlling various small countries by ensnaring them in debt traps through high-interest loans. But there is also a reality that its own house is in very bad condition.

China’s economy has not recovered since the start of the coronavirus pandemic. Not only this, the sharp fall in property prices in China is indicating the poor economic condition there. Apart from inflation, unemployment has also increased in China in the past few years and per capita income has decreased. In view of this, China has cut interest rates.

China’s zero-Covid policy

According to experts, China has not only been adversely affected by the coronavirus pandemic, but it has also been greatly affected by the Russia and Ukraine war. They have more impact on China than other countries. In the opinion of experts, China’s policy regarding the China coronavirus pandemic is now proving to be the opposite. Actually China has started zero covid policy to protect against corona. Due to this policy, apart from business, consumer activities in the country have been affected to a great extent.

Businesses destroyed

Due to the Zero-COVID policy, many places have lagged behind due to the stalled work. Due to this, not only the business has come to a standstill but many small units have also been closed. The Chinese people are also tired of this policy of China and are criticizing it.

In this policy, there is a provision to impose lockdown in case of any case of corona. Due to this policy, many small factories have been closed for a long time. It has also affected the income and employment of the people and due to this the supply chain of the country has been badly affected. Despite all this, Chinese economists believe that China will recover itself from this. At the same time, these experts also say that if China is surrounded by recession, then its effect will be visible in the whole world.

China’s economic growth rate below 5.5

Government figures from China show that all its efforts to improve the country’s economic condition have failed. It has also failed to achieve the target of 5.5% of the economy rate in the current financial year. Chinese Prime Minister Li Keqiang says that it is very important to increase the flow of currency to improve the country’s economy. In view of the deteriorating condition of the country, he has asked to take immediate steps.

Coronavirus pandemic in China

Jacob Günter, an expert who monitors China’s economy, says that China did not follow the policy that other countries made to control the coronavirus pandemic. China did not learn to tackle the coronavirus pandemic. This is the reason why the coronavirus pandemic has become a major reason for spreading economic instability even today.

Not only this, China did not import the effective MrNA vaccine in the fight against the coronavirus pandemic. Due to this, immunity has become less in the people of China than in other countries.


Real estate prices nosedive

Apart from this, the economic situation here has also worsened due to the action taken on the real estate. China’s largest real estate group Evergrande is now on the verge of bankruptcy. Those desirous of getting a new home have bypassed the loan policies.

Therefore, the number of new home buyers has dropped significantly. Many experts are acknowledging the slowdown in real estate as a major reason for China’s slow pace. This real estate contributes about 30 percent of the country’s GDP. China’s central bank has categorically refused to give more economic relaxation until inflation is controlled.


China steps apart from the world

Experts also say that China is taking different steps from other countries of the world to improve its economic condition. In the world, where banks have raised interest rates, China has reduced them. Due to China’s zero-COVID policy, there is a fear of business to stop anytime in the minds of people.

The post Covid-19 pandemic destroys China’s economy, growth rate nosedives appeared first on News24 English.

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