China’s Surging Youth Unemployment Prompts Beijing to Halt Data Series
China, the world’s second-largest economy, is showing signs of a rebound, challenging the prevailing pessimism from Wall Street that the communist country is headed for a major financial slump.
Recent data for August indicates a positive shift in China’s financial landscape, as retail sales rose 4.6% in August, surpassing expectations of 3.0% and a previous figure of 2.5%. Industrial output came in at 4.5%, an unexpected increase against the anticipated 3.9% and July’s gain of 3.7%. Investment in property development, meanwhile, took a nosedive of 8.8% last month, as did new property construction with a year-over-year drop of 24.4%.
However, China’s youth unemployment reached a disconcerting 21.3% last month (some suggest it might be even 50% now) and won’t be showcased anymore. The Beijing administration has suspended its reportage, likely to veer attention away from a deteriorating labor market.
Despite these mixed figures, China’s National Bureau of Statistics remains cautiously optimistic. NBS spokesman Fu Linghui shared that while the domestic economy still grapples with “structural and cyclical problems,” the aim is to expand domestic demand.
Frances Cheung of Oversea-Chinese Banking in Singapore shared a similar sentiment, citing the positive movement in industrial production and retail sales, and suggesting that China is putting forward rapid policy measures to amplify impact. Cheung also highlighted the shift from prioritizing money price to more direct support through fiscal spending and liquidity injections.
Information for this story was found via the National Bureau of Statistics and the sources mentioned within the article. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
