Beijing, China: China is in a vulnerable position in 2023 and is likely to see a trade deficit resulting in a decrease in GDP growth and low profits and depressing employment in the manufacturing sector, according to the Hong Kong Post.
The reports from Hong Kong Post added that there is a loud and clear message that markets should not be too optimistic about the growth of China this year as per the comments recorded on the microblogging website of China called Sina Weibo.
In December 2022, after China ended its Zero Covid policy, the nation had hoped for economic recovery, adding that deteriorating households’ confidence left with unresolved conflicts in the housing sector weighed on the growth rebound of the country.
As per the preliminary economic data recorded in February, the growth of China has yet to fully roar back as the turnover in freight transports is still on the down from over a year.
Home sales in China remained below last year’s records as falling sales dropped the sales in the tier-two cities with high unemployment rates, which resulted in low household confidence, said reports.
Amid the current crisis, several banks in China are resorting to dramatic measures, including allowing people to keep paying off mortgages until they are 95 years old. Meanwhile, the bank located in the provinces of Hangzhou, Nanning, and Ningbo, along with Beijing, have stretched their upper age limit for mortgages from 80 to 95 years, said reports.
On the other hand, people around 70 are now allowed to take out loans with maturities of 10 to 25 years, reported The Hong Kong Post. Moreover, the Bank of Communications in Beijing has facilitated one of its branches to allow borrowers as old as 70 to avail of home loans lasting 25 years, which increases the upper age limit on the mortgages to 95 years.
In the end, the Chinese economy will, in the medium-to-long term, move into a downward spiral due to demographic headwinds and declining productivity, according to The Hong Kong Post.
