In a report released by Barclays Bank on Wednesday, analysts stated that it is anticipated that some countries around the world will experience stagnation over the coming year, and as a result, China’s exports may decrease by 2 to 5 percent in 2023, as opposed to earlier expectations of exports by 1 percent.
According to analysts, China’s export market share is declining this year as several foreign firms have moved their orders from China to other close neighbours like Vietnam, Malaysia, Bangladesh, and India, particularly for goods that require heavy labour to make.
Exports are still an important economic engine for China, according to the report, especially when Beijing has provided many countries around the world with health products and electronics during heavy demand during the spread of the Corona epidemic.
China’s exports surged by 29.8% in 2021 after increasing by 3.6% in 2020, according to the country’s Customs Authority.
Exports from the second-largest economy in the world increased by 12.5% on an annual basis from the beginning of the year until the end of September, but the rate of growth has slowed down this year.
On the other hand, the reduction in the growth expectations of China’s economy for the next year came as a result of the decline in real estate investment, as the Barclays report expects that investments in the sector will decline between 8 and 10 percent.
A quarter of the nation’s gross domestic product is made up of the real estate industry and related industries.
The sector has been witnessing unrest for nearly two years, as Beijing curbs the accreditation of strong developers on debts in order to grow in their business, while the demand for homes has decreased significantly..
Due to this, Barclays lowers his projections for China’s economic growth in 2023.
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