China’s shaky economic recovery

China’s shaky economic recovery
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Islam News – China’s economic path forward is likely be uneven and painful. Years of Covid lockdowns have taken a brutal toll on its businesses. After the country’s chaotic reopening, the uncontrolled spread of the coronavirus has deprived them of workers and customers, even though the reversal of restrictions was meant to improve the economy.

The global economy is also slowing, as shoppers tighten their budgets at home and abroad. Manufacturing activity in China contracted in November and December. Many Chinese workers are now looking for ways to rebuild their savings, even as the Lunar New Year holiday approaches later this month, a time when families typically splurge.

The weak spending is also further depressing the profit margins of many of China’s small private businesses, which power its economy. Stores and car dealerships face a surplus of unsold products. And a survey released on Saturday found that for service industries like restaurants, business last month was almost as bad as it was in early 2020.

Bright spots: The lifting of quarantine rules has helped drive sales of airline tickets ahead of the Lunar New Year. And the removal of daily P.C.R. testing on people and imported goods has saved time and money for both companies and workers.

Youth: This month, as many as 2.6 million applicants will compete for 37,100 prestigious entry-level government jobs. Although the work offers stability at a time when youth unemployment is high, it can be monotonous and draining.

Source: The New York Times

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