More depressing news on China’s economy


World Finance & Economy
For image text, go to https://www.bbc.com/news/business-46755158 (China's economic slowdown: How worried should we be?)
More depressing news on China’s economy

PORT MORESBY: Economists are predicting that China’s economy is heading for a deflation with producer prices likely contracting in the second half of this year.

This is more bad news for the already erratic global economy fueled by the US-China world trade war.

As more and more negative financial and economic forecasts unfold daily, more and more repercussions befall other smaller economies.

The latest being the reported poor manufacturing indicators in the US and Europe, sparking concerns that the US is heading for a recession.

Here’s what the so-called economists are saying about China, as reported by Bloomberg:

China’s economy will just about escape deflation in 2019, survey says

ECONOMY
Tuesday, 26 Mar 2019
2:22 PM MYT

BEIJING: China’s economy will flirt with deflation this year, with producer prices likely contracting in the second half, according to economists.

Factory-gate prices will grow by just 0.3 percent in 2019, according to the median estimate of 15 economists in a Bloomberg survey. That’s down from the forecast of 0.8 percent seen last month. Some said prices could begin contracting as soon as July, with negative price growth remaining until early 2020.

The outlook for producer-price gains in the next two years was also cut by almost half to 0.8 percent in 2020 and 1.3 percent in 2021, suggesting a prolonged battle with weak demand and declining industrial profits.

The rekindled deflation risks in China add to global concerns on growth. Domestically, tepid price gains bring greater pressure on company debt repayments as their profit shrinks, and weaker fiscal revenues.

The People’s Bank of China started cutting interest rates when factory-price growth stayed negative between 2012 and 2016, although it is less likely to repeat that course in 2019 amid a new focus on targeted fiscal stimulus.

“Interbank market rates will likely decline further” on slowing producer prices, said Lu Zhengwei, chief economist at Industrial Bank Co. in Shanghai.

The divergence between factory inflation and faster consumer price gains will worsen the pressure on manufacturers’ profits, he said. - Bloomberg

Comments

Post a Comment

Popular posts from this blog

Sugu Valley tribal war death toll rises to at least 30

Image
News that matters in Papua New Guinea Armed tribal warriors on the move in Sugu Valley. Sugu Valley tribal war death toll rises to at least 30 PORT MORESBY: At least six tribes have been fighting in Sugu Valley (Kagua-Erave, Southern Highlands) since Feb 10, 2019, without any signs of an end and peace. In fact, the death toll has risen to at least 30, up from 11 on May 23, 2019, and the opening of a new battlefront in Sumbura near Poroma with multiple deaths reported in 24 wards. Armed tribal warriors on the march into the forests and jungles. PNG Cyber Monitor had on a May 25, 2019, posting ( https://pngcybermonitor.blogspot.com/2019/05/real-life-rifles-bows-and-arrows-bloody.html Real life rifles, bows and arrows bloody fights in PNG ) highlighted the bloody battle waged by tribal warriors armed with rifles, bows and arrows and knives. PNG Cyber Monitor is again highlighting the plight of the villagers who have been living in fear as reported by The Nationa
Read more

Growing unemployment rate in Papua New Guinea

Image
News that matter in Papua New Guinea Growing unemployment rate in Papua New Guinea (Employment stagnant since 2014) PORT MORESBY: Employment in Papua New Guinea (PNG) has remained stagnant since 2014 with millions of unemployed looking for jobs. The formal job market currently can only accommodate between 400,000 and 500,000, Institute of National Affairs executive director Paul Barker says. “As more young people enter the job market this year after graduating from tertiary institutions and schools, the chances of securing formal employment is slim. “Employment had remained stagnant despite the increase in potential workers coming out of educations institutions,” he added. Read on for more details as published by The National : Hard to get jobs January 27, 2022 The National Main Stories By DALE LUMA MILLIONS of eligible workers around the country are looking for jobs in the formal sector, which currently can
Read more

Sorcery shame for Papua New Guinea in X’mas

Image
News that matter in Papua New Guinea Sorcery tortures and violence are still being practised in Papua New Guinea in this 21st Century digital era. Sorcery shame for Papua New Guinea in X’mas PORT MORESBY: It was international shame for Papua New Guinea (PNG) this Christmas when sorcery reared its ugly head. Six women were stripped, bound to poles and burnt with hot knives as they screamed in pain, watched by an unsympathetic crowd. In a video that has gone viral in the internet, the women were accused of practising sorcery in Southern’s Enga. Police Comm David Manning described the sorcery torture as vile, inhumane, uncivilised, void of any human decency. “Papua New Guinea cannot progress without letting go of these horrific traditional beliefs. We have launched an urgent probe into the incident in Aiya’s Pawayamo village in Kagua-Erave.” The news break was published by The National : Horror torture of women Decem
Read more