China's economic growth, a major driver of the public account
global economy for decades,
is now facing new challenges.
Rapidly aging population and slowdown in key sectors are raising
concerns about the countries future economic growth.
Our next report anymore.
Chinas economic miracle faces a demographic hurdle the.
Percentage of its population over 65 has skyrocketed from 7%
in 1998 to 15.4% in 2023.
This rapid aging is unprecedented,
and experts warn it could significantly impact future growth.
Historically, no nation has achieved high economic growth of over
4%
after reaching a 15% elderly population share.
This raises concerns as Chinas GDP growth,
though still outpacing the US,
has slowed in recent years.
Demographers predict a significant slowdown for China.
They forecast a drop to 3%
growth by 2028, with AUS potentially surpassing China by 2031
to 2035.
The US Congressional Budget Office projects a more gradual slowdown
for the US,
with growth easing from 2.2%
to 1.9% by the early 2000 thirties.
This potential shift could have major global ramifications.
Chinas economic slowdown isn't solely due to demographics.
An eroding trade surplus, low interest rates and deflationary pressures
are weakening its currency and hindering growth.
Additionally, stagnant household income and shrinking workforce further complicate the
picture.
Experts believe tackling these issues requires a significant political and
economic overhaul.
Something China may be hesitant to undertake.
This, coupled with the ongoing real estate crisis,
high youth unemployment and trade tensions paint a concerning picture
for Chinas economic future.
Some experts even predict a lost decade of stagnation.
Business Bureau we on or list one.