Posted 1/12/2024, 5:42:00 AM
China Faces Deflationary Pressures and Export Slump, Prompting Calls for Economic Stimulus
- China's consumer prices fell 0.3% in December, marking the longest deflationary streak since 2009
- Factory-gate costs dropped 2.7% over the past year due to lower commodity prices and weak demand
- Chinese exports fell 4.6% in 2022, the first annual drop since 2016, knocking economic growth
- Economists predict rate cuts and other stimulus to boost domestic demand and confidence
- Government spending is expected to increase this year to stimulate the economy