Why China's economy is in trouble and what it means for you

18.08.2022, 12:25 dw.com

Beijing this week slashed interest rates to boost demand after its zero-COVID policy and a property crash rocked the economy. China's woes will hurt global growth but could also help to cool inflation. As growth in major global economies slows as a result of high inflation, exacerbated by the Ukraine war, many economists are hoping that China will again come to the world's rescue. But this is not 2008, when China's then rapidly expanding economy and a huge stimulus unleashed by the Beijing government, helped Western countries to recover much faster from the financial crisis. This time, China's economic woes run deep. The government has all but given up on this year's target of 5.5% GDP growth and Premier Li Keqiang warned last month there was little appetite right now for more expansionary policymaking.