A week after releasing its growth figures, Beijing has publicly acknowledged the “difficulties” and “challenges” facing its economy. Behind this assessment hides above all a real estate sector mired in the crisis and young Chinese who are struggling to find a job.
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Long penalized by its zero covid policy, Chinese economic activity has picked up again – its GDP increased by 6.3% over one year – but not as much as the authorities had hoped.
In addition to the current geopolitical context, tensions with the United States or even the war in Ukraine, the Chinese authorities point the finger, without naming them, of ” risks », and « dangers, hidden in key areas of their economy “.
Among them is a jobs crisis. In June, the unemployment rate among 16-24 year olds was the highest China had ever seen. One in five young people is unemployed.
real estate crisis
The country is shaken by another crisis: that of real estate. Since 2020, access to credit is limited. As a result, developers’ debt is growing and some are on the verge of bankruptcy. The situation is gradually freezing construction sites and dissuading individuals from buying.
At the same time, Chinese incomes are falling and so is their consumption. Recently, the authorities have multiplied measures to encourage citizens to buy new vehicles or electronic products, two key sectors of activity in which the country hires a large number of employees. They also hope to attract private investment.
But after the meeting on Monday, and despite the tone concerned of power, no major announcement, no recovery plan, have been unveiled.