Topic: China’s economy is contracting and this is not good for the global economy. - page 3. (Read 483 times)
April 17, 2020, 04:31:43 PM
The whole world is in shambles right now, and China is no exception. Also, most of the giant companies of EU and the US are already thinking of leaving their production and manufacturing bases in China for good, plus the fact that the whole world is looking down on China for selling defective gears against COVID-19. If this goes on for a couple of months, we might see the whole world take a hit as a recession follows. And for damn sure China isn't one to suffer from it but also the whole world. After the pandemic eases, the world would be rushing back at its feet to catch-up and repair the economy, which would not be pretty and easy.
April 17, 2020, 04:19:54 PM
Yeah no shit. Countries are pissed, UK, ITALY, USA have more cases of coronavirus all because of China. People are in lockdown everywhere except China. So if countries cant get rid of Coronavirus, they are gonna do the next best thing, doom China.
China's economy contracting is a bad thing for sure, because once we get out of this shitshow, things are going to be WAY WORSE, not only health wise, but for the economy as well. I would be lying if I said I am not scared about what 2021 is going to look like, because getting over from a pandemic could be either of the two things: The global economy ends up in a full fledged recession where we end in a doom and almost not be able to recover where millions die suffering from the bad economy, OR we somehow manage to survive through this and countries manage to pull through and we get back in track by 2022 at least. But the way things are going, it definitely seems like the first option is more likely to happen, so brace for impact,its going to be a rough ride.
China's economy contracting is a bad thing for sure, because once we get out of this shitshow, things are going to be WAY WORSE, not only health wise, but for the economy as well. I would be lying if I said I am not scared about what 2021 is going to look like, because getting over from a pandemic could be either of the two things: The global economy ends up in a full fledged recession where we end in a doom and almost not be able to recover where millions die suffering from the bad economy, OR we somehow manage to survive through this and countries manage to pull through and we get back in track by 2022 at least. But the way things are going, it definitely seems like the first option is more likely to happen, so brace for impact,its going to be a rough ride.
April 17, 2020, 04:14:26 PM
I have till date believed that the Chinese economy was going to remain strong despite the virus crisis, but I’m stunned to see that their economy is contracting, and I believe this will impact each and every country’s economy who trade a lot with them.
I think it's the opposite way really, ie. a large cause of China's economy contracting being that all of their trade partners are economically crippled right now.
While I suspect that China will be quicker to get their production back up than most of the west, their market is likely to be impacted by decreased international demand. Both because China's main export markets will likely (a) take a little longer to recover and (b) try to increase domestic production wherever possible as to decrease the dependency on international trade.
April 17, 2020, 04:10:36 PM
Quote
CHINA'S ECONOMY contracted 6.8% during the first three months of the year from the year prior – representing the country's first and largest reported economic decline since it began formally reporting data in the 1990s.
I have till date believed that the Chinese economy was going to remain strong despite the virus crisis, but I’m stunned to see that their economy is contracting, and I believe this will impact each and every country’s economy who trade a lot with them.
This is the first time in my lifetime that China's economy has ever contracted.
Consider that, and then remember this is China's official narrative. The reality is worse. China Beige Book estimates a 10-11% GDP contraction after surveying Chinese firms: https://www.reuters.com/article/us-china-economy-business/virus-had-eye-popping-impact-on-chinas-economy-beige-book-idUSKBN21A3R9
It's difficult to comprehend the scale of economic losses this entails. The stock markets are still in disbelief, bucking all the consistently horrible economic data, but the effects are being seen in crude oil prices, which is digging out new lows and looks to be on the edge of collapse. If the bottom falls out for crude oil, the US oil industry will collapse and the Fed will be faced with taking on incredible amounts of corporate debt to keep markets afloat.
Furthermore what do you’ll think that China should do at this stage to arrest this fall, and most importantly do you’ll believe that they’ll be able to repair their economy?
It's a mystery. We have no idea what's really going on inside China. The fact that the government is allowing this "second wave" narrative to take hold in the media tells me things are probably much worse than we think.
April 17, 2020, 03:49:45 PM
China are in trade with many countries and China gives out loans in much amount to countries so there economy has influenced in other countries. The pandemic was always going to compress every economy, to add the haven't even done too badly. After the covid 19 saga countries would take time to rebuild
April 17, 2020, 03:39:56 PM
I still beleive that chinese economy will recover soon. Like many other economies in the world they are suffering at the moment and have the bigest GDP fall since 1992 but I think that unlike many economies in the european countries in the world they will be back to feet very soon and US and Europe will need much longer period of time so Chinese will have advantage once more.
I don't actually think this is the case.
We've seen china drop by about 26% and then rally back, we've seen Europe do the same and while I'm in no doubt Europe can fall further (potentially 25% - as estimated) the US may stand to lose a lot more... Grouping the two together disregards the semi-stable wealth production in Europe and the bubbled assets in the US.
April 17, 2020, 02:59:07 PM
China is so impressive and many countries were amazed in the middle of their sudden liberation and totally, they were the first to hit by the impact of coronavirus but very fast to survive as if nothing which is envious because I think they seem to know the actual situation in advance and basically the number of confirmed cases is lower than which is compared to the US and Italy and it seems that the economy of China is the first poverty alleviation.
April 17, 2020, 01:28:38 PM
I still beleive that chinese economy will recover soon. Like many other economies in the world they are suffering at the moment and have the bigest GDP fall since 1992 but I think that unlike many economies in the european countries in the world they will be back to feet very soon and US and Europe will need much longer period of time so Chinese will have advantage once more.
April 17, 2020, 01:12:39 PM
Quote
CHINA'S ECONOMY contracted 6.8% during the first three months of the year from the year prior – representing the country's first and largest reported economic decline since it began formally reporting data in the 1990s.
I have till date believed that the Chinese economy was going to remain strong despite the virus crisis, but I’m stunned to see that their economy is contracting, and I believe this will impact each and every country’s economy who trade a lot with them. Furthermore what do you’ll think that China should do at this stage to arrest this fall, and most importantly do you’ll believe that they’ll be able to repair their economy?.
Source:
https://www.usnews.com/news/national-news/articles/2020-04-17/chinese-economy-contracts-68-as-coronavirus-cases-revised-higher
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