The outlook for China's economy is not going well and economists are now pulling back their expectations for this year's GDP growth.

As detailed by CNBC, a professor of international trade and economists warned that the second half of the year is expected to come with a flashing red to China's economy. This is after data received over the weekends show no progress over the last few months. To be specific, the country is undergoing issues related to housing, market demands, private investments, consumer spending, and more.

However, chief strategists believe that compared to other countries that suffered from the housing market, China prevented a massive financial crisis. Rather than collapsing instantly, the economy is currently transitioning slowly, which gives them time to possibly recover in between.

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China Under Economic Crisis

Alongside the housing crisis, a significant part of China's economic downturn also relied heavily on industrial production, retail sales, and urban investment, which became slower in August and missed economists' expectations.

In a report by ABC News,  the jobless rate hit a record high for six consecutive months. Projections for China's GDP growth this year are also lowered to 4.8% by most western banks. As the world's second-largest economy, this update was a huge disappointment to economists, following their recent jobless rate recovery from the pandemic.

Analysts believe the Chinese government is not speeding up strict measures to stimulate their ailing economy and has been focusing on a slow-waiting game instead. With this development, economic growth is far from reach, considering the main drivers are job security and income growth. Consumer spending is also part of GDP, and Chinese citizens are heading towards speedy reduced expenses.

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