China has released a slew of economic data this morning, showing its economy grew last year by a solid 5% percent, meeting the government’s target.
Other annual figures released show that total retail sales of consumer goods were up by 3.5% last year, compared to 2023.
But despite these positive indicators China’s economy is still facing challenges from the real estate crisis fallout, people are concerned about their job prospects and there is a reluctance to spend money domestically.
The misty megacity of Chongqing in southern China (population 32 million people) is a good place to take the temperature of the country’s economy.
Cathy Zhou and her mother Mrs Deng stuffed dumplings while describing their economic worries to Sky News.
Cathy has been unemployed since the end of COVID-19. She said she can’t find a job that pays her enough to live on and that salaries have halved.
Cathy Zhou, currently unemployed in Chongqing
“I used to be the headmaster of a training school,” Ms Zhou said. “Some of my friends have been at home for one or two years, looking for jobs, but can’t find any. They stay home, get some hope and look again.”
She added: “Before my friends would tell me they buy bags, buy clothes, but now they are shopping less and everyone is saving.”
Mrs Deng, a retired factory worker in Chongqing
Ms Zhou’s retired mother Mrs Deng worked in a factory for almost 30 years.
“The younger generation have less stable jobs, if they lose it they still need to pay their mortgage, so we have to save money to help them,” she said.
With Chinese New Year around the corner, the government is trying to boost consumer demand.
It’s expanded a list of subsidies to encourage people to trade in old electric…
