Lost decade: Is China facing a Japan-like situation? Yields on government bonds are tanking, triggering worries that the world's second-biggest economy could be facing a multiyear economic slowdown
Is the Chinese economy in danger?
The status of the Chinese economy is not in a very good position, as the country's bond market is signaling concern over a possible decades-long economic downturn, as per reports. Bond investors in the Asian country are currently shying away from any further investments, and have grown increasingly pessimistic in recent weeks, says a Business Insider report.
This situation is quite similar to what happened to Japan's economy, that is often termed as 'lost decades'. which was basically a deflationary period that came with a steep economic slowdown, putting the entire future of the national economy in jeopardy, that took years to recover from.
As of now, China's bond yields have plunged to record lows in the last few weeks, and have fallen below levels seen during the pandemic and even the infamous global financial crisis of 2008. This is a shocking factor as this has never before happened in the history of the Chinese economy, that too in the last few years.
FAQs:
Is the Chinese economy booming?
The Chinese economy has shown mixed signals in recent months, instead of outrightly booming.
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