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 Silver Production Set to Grow 4.1% in 2024 with Operations Resuming READ MORE Gold Prices Stabilize as Focus Turns to Upcoming US Economic Indicators READ MORE Fed Chair Powell Stresses Patience on Rate Cuts Amid Inflation Battle READ MORE Credit Card Debt Climbs: 56 Million Americans in Prolonged Debt Amid Economic Pressures READ MORE Walmart and Target Cut Prices Amid Persistent Inflation Concerns READ MORE Add a Comment Cancel replyYour email address will not be published.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