In the News

Is the Chinese economy a ticking time bomb?

Graham Watson

31st August 2023

The BBC carries an article about the state of the Chinese economy, noting its "low growth, record youth unemployment, low foreign investment, weak exports and currency, and a property sector in crisis."

What does this mean? Both for the Chinese and the global economy? The well-documented problems with the property market, and collapsing property prices have meant that the Chinese economy has struggled to recover post-pandemic and there seems to be little sign of spending recovery, even though the economy is, apparently, due to grow by 4.5% this year.

Whilst it seems that there's little prospect of the economy collapsing, it's difficult to see how the current economic and political model can return China to steady growth and narrow the income gap between urban and rural areas.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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