China Crisis 2023: When will China's challenges end? After deflation now the crisis of unemployment has come to the fore. - Newztezz Online


Sunday, August 20, 2023

China Crisis 2023: When will China's challenges end? After deflation now the crisis of unemployment has come to the fore.

China Economic Crisis: The world's second largest economy, China has been the engine of global growth for a long time, but it is currently facing challenges and the growth rate is slowing down...

Asia's largest and world's second largest economy China is in trouble these days. China, which played the role of engine for the global economy for a long time, was troubled by the challenge of deflation earlier. The way to overcome deflation was not yet found that unemployment has raised concerns.

The unemployment rate has become so much in June

A recent report by the news agency AFP states that in recent times unemployment is creating a new record every month. Figures for the month of June show that in China, about 21 out of every 100 youth aged 16 to 24 do not have work. The unemployment rate in this age group increased to 21.3 percent during the month of June.

Youth unemployment on new record

Unemployment among youth aged 16 to 24 is at a record high. This shows that such youth are having trouble getting jobs, who either do not have experience or have less. It means that it has become difficult for the youth of China to find their first or second or third job. Looking back this year, it is known that the unemployment rate in this age group is increasing every month since January.

Government stopped publication of statistics

Recently, the government in China also had to face criticism due to unemployment. China has stopped publishing the report showing youth unemployment statistics due to wildly rising unemployment. It is being told that after the unemployment rate of the youth reached a record level in June, the government has taken this step to hide its embarrassment.

Deflation crisis before unemployment

This crisis of youth unemployment has come at a time when China is facing the problem of deflation in an unexpected way. The inflation rate in China came down to 0.3 percent in the month of July. The condition of such a fall in inflation is called deflation. The problem with deflation is that its main reason is a sudden weakening of demand.

This is why inflation is dangerous

Since there is no demand left in the market, the prices of goods are decreasing rapidly and this is the reason that the inflation rate has reached very close to zero. In such a situation, the Chinese government is considering various measures to create demand in the market. If the government does not overcome the challenge of deflation soon, then it can have a very bad effect on China's economy and there can be a huge decline in its economic growth rate.

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