• Register

Stock market analytics, financial forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Bloomberg: the weakness of China's economy is reflected all over the world


May, 26 2023
watermark Economic news

Bloomberg analysts said that China's weak economic recovery and Beijing's unwillingness to apply major incentives are reflected around the world. In particular, this entails a decline in commodity prices and leads to sales on stock exchanges.


Macroeconomic data from China signal an increase in fears that the country's recovery has stalled after the lifting of anti-bullying restrictions. It is expected that China's GDP growth this year will be closer to the government's target level of about 5%, contrary to expectations of its significant excess. The consumer services sector is growing the most, while industrial activity is lagging behind.


China's real estate sector is also in crisis, where sales have resumed along with the constant financial problems of developers. To date, local authorities have a sufficient amount of debt, so infrastructure spending is growing at a limited pace.


Due to low activity in construction, the raw materials markets are also under pressure: copper is trading below $8000 per ton, while iron ore has exceeded $100 per ton. As you know, China buys crude oil and copper the most in the world, and its steel industry accounts for more than half of the global demand for iron ore.


At the same time, the price of coal, with which China supports its industrial base, has fallen by 18% since the beginning of the year. Analysts note that domestic consumption has not yet paid off, and the export of industrial goods from China is experiencing difficulties.


Top Top