China Silences Economists Amid Growth Concerns
Beijing warns economists to avoid discussing negative economic outlook after post-COVID recovery fizzles. FDI drops by $100 billion.
The Chinese government is cautioning economists against discussing deflation and decelerating economic growth, the Financial Times reveals. As foreign investment declines and China struggles to attain the rapid recovery it hoped for post-COVID, such directives have been passed down to economists, analysts, and researchers.
Key indicators show a concerning picture: a disappointing second-quarter growth, zero consumer price inflation in July, a surge in youth unemployment to 21%, and a staggering $100 billion drop in foreign direct investment in the initial quarter of 2023. Beijing recognizes these challenges but hasn't launched a significant stimulus initiative many experts deem necessary.
Source: Financial Times