The USD/CNH recovered overnight at approximately 0.45% around 7,2700, BBH FX analysts report.
China’s consumption-pib ratio is very low, about 40%
“China’s economy is struggling to escape a deflationary spiral. In February, the general CPI fell more than expected to -0.7% interannual (consensus: -0.4%) compared to 0.5% in January.”
“This was the first drop in 13 months and largely reflects a high base of the previous year. The underlying IPC first decreased from 2021 to -0.1% year -on -year compared to 0.6% in January, since the prices of services fell more in four years. Finally, the contraction of the IP extended to 29º month, falling a -2.2% year -on -year against -2.3% in January.”
“To escape the debt-deflation cycle, those responsible for Chinese policies need to increase fiscal measures to boost consumption. China’s consumption-PIB ratio is very low, around 40%, due to high savings of households, low income levels of households and high levels of household debt.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
