On 26 October 2022, Bloomberg reported that the economy of China was in recession in October, as the decreasing sales number of automobiles and properties, even world trade and the confidence of small businesses was shrunk which means the activities in September didn’t enough China economy to be recovered.
After the government released Covid Zero measures that affect the economy, especially the confidence of small businesses shrunk for the first time this month since May, meanwhile the demand in China including residence as well as catering declined to the lowest level since February 2020 and May 2020 respectively.
Hereafter, Reuters reported that Chinese state banks sold the US. dollars in both onshore and offshore markets to handle gently the weakening yuan.
This action reflected that the US. dollars appreciated and the concern in the economy of China was slowing down
Nonetheless, the Chinese economic trend continuously recovered but was interrupted by the lockdown and covid-19 measures in China. The decrease in the property sector and the trading sector was affected by the global economic slowdown, the inflation rates, and rapid interest rate hikes. All of the factors mentioned above impact China’s economic growth. Moreover, China’s government has to prepare promptly to handle COVID-19 not to spreading again to affect the economy.
Published 02/11/2022
By Windy K.
