Deflation only in China?…Is the Korean economy ‘high and low’?

August 13, 2023 0 Comments

Analysts say that the Chinese government’s recent permission for overseas group tours is one of the deflationary measures.

While major countries around the world are fighting inflation, fear of deflation is spreading only in China, which

is also casting a dark cloud over our economy.

Reporter Lee Seung-eun reports.

China switched to ‘With Corona’ earlier this year, but consumption fever quickly cooled down due to the real estate recession.

Even with massive discounts, people have closed their wallets, and the manufacturing industry is also off.

China’s consumer price inflation rate, which had been in the 0% range for four consecutive months, finally turned negative in July.

The producer price index also fell 4.4%, the first time in안전놀이터 two years and nine months that both indexes fell.

Foreign media are even citing concerns about a long-term Japanese-style recession, saying that China’s economic downturn and inflation and deflation are becoming a reality.

Previously, China’s youth unemployment rate exceeded 21% in June, a record high, and exports in July also showed the largest drop in three years and five months.

[Suk Byeong-hoon / Professor of Economics, Ewha Womans University ( YTN Good Morning Economy): The important thing is that China’s imports from Korea and Taiwan also plummeted by more than 20%. This is mainly from Korea and Taiwan, where China has been importing semiconductors and electronic products, but the demand for semiconductors and electronic products is not increasing… .]

Although the dependence on exports to China fell to 19.5% in the first quarter of last year, China is still the number one country in terms of our exports.

The downturn in the Chinese economy is bad news for the ‘high and low’ trend that our government expects this year.

[Jeong Gyu-cheol / Korea Development Institute KDI Economic Outlook Director: The Chinese government is using a lot of economic stimulus measures, but if they don’t have much effect, our growth rate is also expected to be 1.5%, but there is a possibility that it will be significantly lower than that… .]

The strengthening of US investment restrictions overlapped with heavy rain damage, but as local government debt soaring and the yuan weakening are obstacles, attention is focused on what kind of economic stimulus the Chinese government can come up with.

This is YTN Lee Seung-eun.

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