Opinion. October 18, 2021. Will the Slowing Down of the Chinese Economy Cause a Worldwide Recession?

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The Chinese economy is slowing down. In the 3rd quarter of 2021, the economy only grew 4.9% compared to the same period in 2020. This represents considerable slowing compared to rates for the past 30 years. The sectors of the economy which are still doing good are the exports and the high income people consumption

A symptom of the current decline in the growth rate of the Chinese economy is the liquidity issue of their biggest real estate developer, Evergrande Group. This has to do with the amount of debt that regular people and smaller developers have acquired and that they are struggling to pay.

The Chinese economy has become the engine of the world. China imports many raw materials from all over the world, specially developing countries. If the Chinese demand decreases, it will impact negatively on commodity prices and will eventually affect the exporting countries.

Developed countries mostly import finished goods from China. At least for now, the exports re still doing world. However, if the demand of the Western countries decreases due to their own economic issues, this will impact the Chinese economy and make it weaker. Also the rising prices of energy will make a recession more possible.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.


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China's economic slowing down means the impact of the recession on some countries. Especially for developing countries. However, when the economy of a developed country declines, more or less all the countries are affected more or less. Well written..

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The slowing down of Chinese economy has gradually started to disrupt market and caused higher inflation. Thanks for sharing and have a wonderful day.

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