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Planet Money

China's weakening economy in two Indicators

Sep 13, 2023
Explore the challenges of obtaining accurate economic data in China, including the use of anecdotes to analyze the weakening economy. Learn about the alarming increase in urban youth unemployment and its long-term consequences. Discover the impact of the pandemic, political circumstances, and paused publishing on China's economy. Hear personal stories of young people struggling to find jobs and their aspirations for the future.
18:32

Podcast summary created with Snipd AI

Quick takeaways

  • China's economy remains weak with higher unemployment and plummeting house sales, contradicting the theory of revenge spending.
  • The China beige book provides unofficial insights into China's economy, indicating mixed trends in household spending and conservative consumer behavior.

Deep dives

Revenge spending theory debunked in China's weak economy

Despite the theory of revenge spending, where Chinese consumers were expected to spend lavishly after COVID-19 restrictions, China's economy remains weak with higher unemployment and plummeting house sales. Official statistics do not show evidence of revenge spending. However, anecdotal evidence and unofficial data discussed in the podcast highlight the impact of reduced international tourism, fear of travel to China due to political circumstances, and new regulations hindering foreign investment. The lack of household-focused stimulus and conservative spending habits in Chinese consumers also contribute to the absence of revenge spending.

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