The Chinese economy has slipped into deflation, with consumer prices falling for the first time in more than years in another sign of weakening demand, CNN reported on Wednesday.
Amid dismal economic run and bleak prospects, several Chinese top leaders have pointed out that the Beijing economy is facing "new difficulties and challenges", The Standard Media reported.
According to experts, regulatory crackdowns on education, internet, and property sectors are the major reasons behind the spike in the unemployment rate.
According to the most recent data from China's National Bureau of Statistics, the urban youth unemployment rate reached 20 per cent in April 2023 for the first time since statistics became available in January 2018, according to Greek City Times.
Chinese economy bounced back after the government lifted its zero-COVID-19 restrictions in December. However, the recovery of the Chinese economy has lost steam.
According to a UN report, the demographic imbalance in China is likely to have far-reaching implications for the economy including labour shortages, rising employment costs and weakened spending power which would be a drag on economic growth.
Even after being the second most populated country, China's working-age population is drastically declining and it was due to this "workforce" that the Chinese economy thrived in the past decades.
After a decade in Chinese President Xi Jinping's shadow, Li Keqiang is taking his final bow as the country's premier, marking a shift away from the skilled technocrats who have helped steer the world's second-biggest economy in favour of officials known mainly for their unquestioned loyalty
Chinese students in rural areas struggle with poor teachers, nutritional deficiencies, and mobility issues, whereas education in urban areas places a strong emphasis on creativity and innovation, assisting young people in arming themselves with knowledge and skills
Congress MP Rahul Gandhi on Sunday questioned External Affairs S Jaishankar's recent remarks on the size of the Chinese economy, asking the minister if India's economy was big when the country was fighting with the Britishers.
Though 2023 started on a weak note for stock investors, the outlook is expected to be bright globally as the year proceeds, fueled partly by the reopening of the Chinese economy after the Covid-induced lockdown.