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 US Wholesale Inflation Hits Annual High, Signaling More Price Hikes Ahead READ MORE Survey Shows Financial Advisors Favor Increasing Gold Allocations as Prices Rise READ MORE Gold and Silver Set to Soar? Impact of Interest Rate Cuts Explained | Tavi Costa & Alan Hibbard READ MORE Diminished Fed Rate Cut Hopes to Keep U.S. Treasury Yields Elevated READ MORE Bill Gross Urges Federal Reserve to Halt Tightening and Slash Rates to Avert Recession READ MORE Add a Comment Cancel replyYour email address will not be published.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