![](https://i.imgur.com/CLvY2jA.png")
21-04-2023, 07:38 AM
China's economy grows, but youth unemployment refuses to fall
#Econgram_China
Facts:
1) In Q1 2023, the Chinese economy grew by 4.5% year-on-year*, falling behind the official target of 5%.
2) In March 2023, Chinese retail sales increased by 10.6% year-on-year, exceeding the 7.5% forecast. In turn, exports grew by 14.8%.
3) However, youth unemployment* remains high. 19.6% of the Chinese aged 16 to 24 are jobless.
Analysis:
1) The booming retail sales reflect the rise in consumer demand following the end of the COVID-19 lockdown. Boosted consumption increases aggregate demand, causing the expansion of production in the economy.
2) Furthermore, growing Chinese exports are a constituent of aggregate demand. Hence, they promote output growth. However, analysts expect the export growth to slow down in the following months amid the recession in the West. Weak economic expansion in the U.S. and Europe will reduce demand for Chinese goods, hindering exports.
3) Despite the strong GDP growth, youth unemployment in China remains high. That is because Chinese economic growth is largely attributed to non-labour-intensive* economic sectors (e.g. IT and financial services).
https://www.ft.com/content/a8f4e015-2b00...d087f6ab55
#Econgram_China
Facts:
1) In Q1 2023, the Chinese economy grew by 4.5% year-on-year*, falling behind the official target of 5%.
2) In March 2023, Chinese retail sales increased by 10.6% year-on-year, exceeding the 7.5% forecast. In turn, exports grew by 14.8%.
3) However, youth unemployment* remains high. 19.6% of the Chinese aged 16 to 24 are jobless.
Analysis:
1) The booming retail sales reflect the rise in consumer demand following the end of the COVID-19 lockdown. Boosted consumption increases aggregate demand, causing the expansion of production in the economy.
2) Furthermore, growing Chinese exports are a constituent of aggregate demand. Hence, they promote output growth. However, analysts expect the export growth to slow down in the following months amid the recession in the West. Weak economic expansion in the U.S. and Europe will reduce demand for Chinese goods, hindering exports.
3) Despite the strong GDP growth, youth unemployment in China remains high. That is because Chinese economic growth is largely attributed to non-labour-intensive* economic sectors (e.g. IT and financial services).
https://www.ft.com/content/a8f4e015-2b00...d087f6ab55
