A prominent American financial publication has highlighted the distress facing China’s economy, the world’s second-largest. The publication remarked that China’s previously successful model of growth, sustained for four decades, is now deemed “broken”. It also pointed out that the signs of trouble extend far beyond China’s dismal economic statistics to remote provinces.
In a comprehensive report published on Sunday, The Wall Street Journal noted that economists are currently observing China’s entry into an era characterized by significantly slower growth. This challenging situation is compounded by unfavorable demographics and a growing divide between China and the US, as well as its allies. These factors are negatively impacting foreign investment and trade prospects.
The report underscored that the current scenario might not simply be a temporary phase of economic downturn; it could potentially signify the waning of a prolonged period of growth.
