The low growth rate in the world’s second largest economy is considered to be due, among other things, to the fact that the global demand for Chinese goods decreased significantly after the pandemic. The domestic housing market and retail trade have also not lived up to expectations, according to analysts who The BBC has spoken to.
– These are also suites after three years of closure during the pandemic, says China expert Frédéric Cho i Current.
The country is also grappling with record high youth unemployment. According to the latest official figures, 21 percent of all 16 to 24-year-olds in the cities were unemployed. The group of young unemployed has grown in recent months and is predicted to continue growing for another month or so, according to calculations by the Chinese authorities.
The training does not match the need
One reason that is pointed out for the high numbers is that young people often choose education in fields other than those where labor is needed. But Frédéric Cho also believes that the private companies that previously provided a large part of the job opportunities for young people no longer have the same faith in economic policy.
– A less ideological and more pragmatic stance is required to create employment. Give the private companies the free rein they had before the pandemic, he says.
See more about young people and the labor market in China in the clip above.