China fell into the Great Depression!, people stopped spending and turned to saving money

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  • China’s economy is slowing down
  • People have stopped spending money due to poor condition
  • Youth unemployment is continuously increasing in China

The condition of China’s economy is unstable at present. The property crisis has deepened in China. Unemployment is increasing rapidly. At the same time, the economy is slowing down. There are many reasons for the crisis in China’s economy. The crisis in China is compounded by slow growth, low foreign investment, a crisis in the property sector, weak exports, a weak currency and ever-increasing youth unemployment. The Chinese have invested about 70 percent of their total investment in real estate.

According to the report, by the end of 2022, about 78 million Chinese citizens were in debt and all their debt was on real estate. In the year 2021, the Chinese government limited the loan limit for builders. After this many builders have become defaulters. Hundreds of projects are not being completed. People have now stopped paying installments also. Now people in China have stopped spending money. People are saving money now. Due to which the economy has become more sluggish.

decrease in foreign investment

China’s economy was able to recover for a very short period of time due to the implementation of the strict zero Covid policy. The crisis in the property market in China is now deepening. China’s inflation rate and foreign investment are falling and the debt burden on local governments is increasing. According to the latest official data, China’s unemployment rate has been rising continuously for the past three months. Now people in China have reduced their expenditure a lot. Now people are saving in China also. The growing desire of the Chinese general public to increase savings will make it more difficult for China to rebalance its economy.

people are saving

Now people in China are saving heavily. According to reports, earlier people used to spend a lot in supermarkets. Now people make a list of saving and spending according to their needs. People have also stopped spending unnecessarily. People in China are now adopting old methods for saving. In China now most transactions take place in cash. But now people are going door to door and collecting cash. People believe that this reduces their costs. This is also affecting China’s economy.

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