Facing a serious economic crisis – E24

Paul Krugman, the Nobel Prize winner in economics, believes that the Chinese are saving too much and that the country’s economy is heading into a serious crisis.

The Chinese economy is boiling with negative economic growth, low prices (deflation), and the real estate market is in trouble.

The latest figures show that China ran a trade surplus of $68 billion in August, converted to about NOK 728 billion.

Chinese exports decreased by 8.8 percent compared to the same period of the previous year. Meanwhile, imports also decreased by 7.3 percent.

CNBC writes The numbers are stronger than expected, according to a Reuters poll. This is the fourth month in a row that exports have declined South China Morning Post.

– The Chinese need to live a little

Paul Krugman, the Nobel Prize winner in economics, says in a column recorded in The New York Times that China is heading for a major economic downturn. The country is currently experiencing negative economic growth, at the same time as deflation (prices are falling).

China is facing a serious economic crisis, and they are now reaching the limits of what they can do to keep the economy afloat. Unless the Chinese government is willing to acknowledge the need to do something very different, he says, China will be heading for a very bad downfall.

The Nobel laureate believes that the problem is that people save too much. He says that 40 percent of the family’s income is provided. Krugman believes this is happening because China’s welfare system is weak, and families need savings to get old and in case of a financial emergency.

– The Chinese need to live a little. He says the authorities just need to put the money in people’s hands so they can use it.

There is a sour mood among the major indices in the Asia-Pacific region on Thursday morning.

This is what it looks like at 07.50:

• The Shanghai Composite Index fell by 0.96 percent
• Hong Kong’s Hang Seng Index fell 1.1%.
• The Nikkei 225 index in Tokyo fell by 0.55 percent
• The Kospi index in Seoul fell 0.86 percent
• The FTSE Straits Times Index in Singapore fell 0.27%.
• The Sydney ASX 200 Index fell 1.17%.

A negative mood prevailed in the US stock markets on Wednesday. All indices fell, with the largest drop being the Nasdaq Technology Index, which fell by 1.06 percent. It also ended in the negative on Wall Street on Tuesday.

The price of oil remained above $90 a barrel Thursday morning. The price of oil made a sharp jump to over $90 a barrel after Saudi Arabia and Russia announced that they would extend production cuts of 1 million barrels per day and 300,000 barrels per day, respectively, for another three months.

We expect a strong consumer recovery in India

China’s consumer market is expected to become the third largest in the world in 2027, according to a report by BMI. CNBC.

The country currently ranks fifth, but Fitch Solutions expects consumption among households to increase by 29 percent.

The report predicts that growth in India will outpace other developing countries, such as Indonesia and the Philippines.

It was highlighted that there will be more young people in India. Almost 33 percent of the country’s population is between the ages of 20 and 33. Among other things, this group is expected to spend large amounts of money on electronics in the future.