Mint Explainer | Failed economic rebound, recession fears and increasingly pessimistic youth. How China fumbled the bag

livemint.com:

China's recovery after opening up from its zero-Covid policy has been marred by a deepening property crisis, deflationary risks, and subdued demand; besides other factors such as a recession and joblessness, Reuters reported. Also Read | China: $6.3 trillion wiped out from market value of stocks as investors play the waiting game Expectations of a strong post-COVID rebound in the world's second-largest economy waned amid weak consumer and business confidence, mounting local government debts, and as global economic slowdown weighed on jobs, activity, and investment. China Beige Book International's survey noted a disappointing recovery from COVID-19, suggesting the need for major global upside surprises or more active government policies for acceleration, the report said.

Gross domestic product (GDP) for October-December accelerated to 5.2 percent, surpassing the third-quarter figure but falling short of a 5.3 percent forecast. However, on a quarter-by-quarter basis, GDP growth slowed to 1 percent. December indicators revealed a deepening property crisis despite government support, with retail sales growth slowing and investment remaining tepid, while industrial output showed modest improvement.

Also Read | China has a new youth jobless rate. Some economists are ignoring it China's historical success, marked by substantial growth since the 1980s, is facing a transformative shift. The previous model of massive investments in manufacturing and infrastructure is now overshadowed by increasing debt levels.