China's Economic Woes Deepen as Deflation Takes Hold China is facing a deepening deflationary spiral that threatens to significantly impact its economy. Consumer prices are barely growing in many sectors, and the GDP deflator is expected to continue declining into 2025, potentially marking China’s longest period of deflation since records began. This situation is exacerbated by falling wages and weak demand, leading to concerns about a cycle of reduced spending, decreased corporate revenues, and further wage cuts. The scenario draws parallels to Japan’s “lost decades,” raising alarms about the long-term economic consequences. Despite official reluctance to acknowledge the issue, some prominent figures, including former central bank governor Yi Gang, are calling for immediate policy action to address the deflationary pressures. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts UBS Forecasts Commodity Rally Driven by Strong Fundamentals READ MORE Global Central Banks Favor Gold Over Dollar, Expecting Increased Reserves READ MORE Proposed Ban on Open-Pit Mining Could Crush Mexico's Economy READ MORE Gold Prices Waver as Markets Await Inflation and Fed Signals READ MORE Gold Soars to New Heights as Markets Await Powell's Jackson Hole Address READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment