China’s Deflation Pressures Seen Persisting Through Mid-2024

01/29/2024 10:55
China’s Deflation Pressures Seen Persisting Through Mid-2024

China’s deflation pressures are likely to continue for at least another six months on weak demand and as the property crisis continues to sap confidence within the economy.

China’s deflation pressures are likely to continue for at least another six months on weak demand and as the property crisis continues to sap confidence within the economy.

A measure of economy-wide prices called the gross domestic product deflator is expected to decline for at least two more quarters, according to 12 of 19 economists in a new Bloomberg survey. That gauge — which measures the difference between nominal and real GDP growth — has already fallen for the last three quarters, and a continued drop through June would mark the longest streak since 1999.

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