• News
    • Stocks
    • Banks and Finance
    • Companies
    • Crypto
    • Forex
  • Videos
  • Articles
    • Forex CRM
    • Crypto Payments
    • Trading
    • Crypto Exchange Business
    • Forex Business
    • Fintech
    • Liquidity
    • FinTech Awards
  • Liquidity Providers List
  • Crypto Payment Providers

Dark Theme

Stagflation in China is a ‘Very Real’ Risk in the Next Couple of Quarters, Says Analyst

Oct 28, 2021

Stagflation in China is a ‘Very Real’ Risk in the Next Couple of Quarters, Says Analyst

Stagflation is "very real" in China over the next several quarters, according to an analyst, as factory gate costs climb at a faster rate and economic development is hampered by a power shortage.

Stagflation is a term used to describe a situation in which the economy is experiencing both stagnating activity and rising inflation. The phenomenon was initially noticed in the 1970s, when an oil shock resulted in a prolonged period of rising prices but rapidly declining GDP growth.

In China, the producer price index increased 10.7% in September compared to the same month the previous year, the quickest rate since data collection began in October 1996. Meanwhile, widespread power outages have caused several major banks to lower their GDP predictions for China.

According to Charlene Chu, senior analyst for China macro-financial at Autonomous Research, this predicament has made it impossible for Chinese authorities to significantly stimulate the economy.

Chu said on CNBC's "Street Signs Asia" that stimulus could increase energy consumption and exacerbate current power shortages. At the same time, she predicted that factories forced to shut down for several days a week owing to the power outage will continue to stymie economic growth.

"As a result, I believe we are in a scenario where there are many things weighing on growth right now that are unlikely to go away anytime soon, and we are unlikely to see substantial Chinese stimulus in the next months," Chu added.

"That will be a different dynamic for the globe to adjust to," the expert continued, saying that the world has grown accustomed to China boosting its way out of various economic binds.

No 'crisis of confidence' in property

China's economy is facing a number of difficulties. The third quarter's 4.9 percent year-over-year increase was the slowest in a year.

Aside from the power shortage, which has hampered industry output, a decline in the real estate sector has also slowed growth.

Evergrande and other developers have failed to repay their debts, bringing problems in China's real estate market to the fore in recent months. This came after Beijing launched a drive to limit property developers' excessive borrowing.

The decline in the real estate sector, according to Chu, has "severely" harmed China's economic growth. However, according to the expert, the country has not yet reached a stage where confidence in the primary property market is eroding.

"I don't believe the authorities are attempting to create a trust problem throughout the entire developer sector," Chu added.

Subscribe Our Newsletter

Asian Tech Rout Worsens as China Index Closes Near Record Low
Asian Tech Rout Worsens as China Index Closes Near Record Low

On Tuesday, investor worries of rising interest rates fueled a global selloff in technology equities, with a Hong Kong benchmark tracking Chinese technology companies ending near a record low.

Stocks
Nvidia Stock Rises and Leads Chip Makers Higher After AMD’s Strong Earnings
Nvidia Stock Rises and Leads Chip Makers Higher After AMD’s Strong Earnings

Nvidia led other chipmakers up early Wednesday on the heels of fourth-quarter earnings and a prediction from Advanced Micro Devices that exceeded analysts' expectations.

Companies
Liquidity Provider

How to Choose the Best Liquidity Provider?
Let's find out what services does the Liquidity Provider offer, is the Liquidity Provider regulated and what what other factors to consider.

discover
How Does the Cryptocurrency Exchange Business Work?

Liquidity Provider

How Does the Cryptocurrency Exchange Business Work?

Unlike any other moment in contemporary history, the universal adoption of Bitcoin has been unparalleled. There has been a rapid growth in the number of firms that specialize in bitcoin.

Crypto Exchange Business

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Tamta

    Guide to Craiyon: How To Use a New DALL-E Mini

    https://liquidity-provider.com/app/uploads/2023/06/cover-5-800x540.jpg

    Tamta

    Credit Cards vs. Debit Cards

    https://liquidity-provider.com/app/uploads/2023/06/cover-800x540.jpg

    Tamta

    Investing In Private Equity: What Should You Know?

    https://liquidity-provider.com/app/uploads/2023/05/cover-7-800x540.jpg

    Tamta

    What is Data Analytics? Techniques, Tools, Methodology, and More

    https://liquidity-provider.com/app/uploads/2023/05/cover-6-800x540.jpg

    Tamta

    Bitcoin Halving is Coming: What Does it Mean for the Crypto Market?

    https://liquidity-provider.com/app/uploads/2023/05/cover-4-800x540.jpg

    Tamta

    Crypto Token Supply From A to Z

    https://liquidity-provider.com/app/uploads/2023/05/cover-3-800x540.jpg

    Tamta

    What Is ChatGPT, And How Can You Use It?

    https://liquidity-provider.com/app/uploads/2023/05/cover-2-800x540.jpg

    Anton

    Trading on Autopilot: The Rise of Crypto Trading Bots

    https://liquidity-provider.com/app/uploads/2023/05/cover-1-800x540.jpg

    Tamta

    Crypto Investing vs. Crypto Trading: What’s The Difference?

    https://liquidity-provider.com/app/uploads/2023/04/cover-5-800x540.jpg

    Tamta

    Understanding Indexed Universal Life Insurance (IUL)

    https://liquidity-provider.com/app/uploads/2023/04/cover-4-800x540.jpg

    Tamta

    Best Investment Strategies For Beginners

    https://liquidity-provider.com/app/uploads/2023/04/image1-800x540.jpg

    Tamta

    Understanding Perpetual Futures: How Do They Work?

    https://liquidity-provider.com/app/uploads/2023/04/cover-3-800x540.jpg

    Tamta

    What Is A Bitcoin Stock-To-Flow Model? Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/04/cover-2-800x540.jpg

    Tamta

    Best Decentralized Crypto Exchanges In 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-1-800x540.jpg

    Tatma

    Best High-Yield Savings Accounts For March 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-800x540.jpg

    Tamta

    Crypto Trading For Beginners

    https://liquidity-provider.com/app/uploads/2023/03/cover-8-800x540.jpg

    Tamta

    How To Make Money With Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-7-800x540.jpg

    Tamta

    What Is A Candlestick Chart?

    https://liquidity-provider.com/app/uploads/2023/03/cover-6-800x540.jpg

    Constantine

    White Label Forex Software — Ultimate Guide on How to Choose The Best Industry Solution

    https://liquidity-provider.com/app/uploads/2023/03/cover-3-300x203.jpg

    Tamta

    Forex Trading: A Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/03/cover-2-300x203.jpg

    Tamta

    How to Create a Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-1-1-300x203.jpg

    Tamta

    Top Ten Richest People In The World, 2023

    https://liquidity-provider.com/app/uploads/2023/03/cover-4-1-300x203.jpg

    Constantine

    What’s at Stake? Here’s How to Avoid Scam Tokens

    https://liquidity-provider.com/app/uploads/2023/03/cover-5-300x203.jpg

    Constantine

    Investing in Currencies That Are More Valuable Than the American Dollar

    https://liquidity-provider.com/app/uploads/2023/02/cover-2-300x203.jpg
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
    • Articles
      • Forex CRM
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy