China Sets New Economic Records as Headwinds Loom

China Sets New Economic Records as Headwinds Loom

(TheRedWire.com) – The Chinese economy is experiencing a massive boom while the United States’ market struggles under the weight of rising inflation and empty store shelves. Chinese officials recently reported that its economy expanded by 8.1% in 2021. That’s the best growth in the Chinese economy since 2011, and it was well ahead of the government target of 6%. In 2020, the Chinese economy was the worst in 44 years as the COVID-19 pandemic hit. Still, its recovery was faster than any other major economy.

While the Chinese economy is roaring heading into 2022, economists expect it to slow as headwinds loom. The Chinese central bank recently cut interest rates unexpectedly on medium-term loans. It was the first reduction since April 2020. Some economic analysts predicted the government would ease rates in 2022 to safeguard against growing risks of defaults.

Additionally, retail sales showed signs of slowing as they increased only slightly to 1.7% from a year earlier. Also contributing to economic concerns are pockets of virus outbreaks and a challenge to the property sector.

On Monday, January 17, Chinese President Xi Jinping said China’s economy was sound overall. He added other countries should coordinate with China to strengthen their economies to prevent the world from experiencing another economic dip.

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