Deflation looms in China amid property crisisBloombergChina faces increasing risks from deflation as demand crumbles under the weight of an ongoing property crisis and is threatened by continued COVID-19 restrictions — a stark contrast with other major economies, a private survey showed. Photo: Bloomberg“While nearly the whole world panics over surging inflation, the specter of deflation looms over China thanks to the demand-crushing effects of COVID Zero,” CBBI chief executive officer Leland Miller said in a statement. “A closer look at our sector results provides some relief,” the report said, noting the pickup in retail and services. “Property has been taken out as a growth driver going forward, so you’re gonna have much slower growth completely independent of what’s happening with COVID,” Miller said. Retail and services showed a recovery in those indicators from the second quarter, though they remained below last year’s levels.

Source: Taipei Times September 29, 2022 04:03 UTC