• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

China’s economy is showing signs of stagflation, economists warn

4 years ago
in Economy, highlights, Home, home-news, latest News
2 min read
0 0
0
80
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

China’s economy is showing signs of stagflation, economists warn

There are signs of stagflation in China, as prices continue to rise while the latest manufacturing data show production slowing, economists say.

China’s factory activity contracted more than expected in October, shrinking for a second month, an official survey released on Sunday showed. The official manufacturing Purchasing Managers’ Index for October came in at 49.2, falling below the 50 level which separates expansion from contraction.

Zhang Zhiwei, chief economist at Pinpoint Asset Management, said the production index has dropped to the lowest level since it was published in 2005, excluding the 2008 global financial crisis and the Covid-19 outbreak in February last year.

In contrast, the output price index has risen to the highest level since it was published in 2016, Zhang said.

“These signals confirm that China’s economy is likely already going through stagflation,” he said in a note on Sunday.

Stagflation is when the economy is simultaneously experiencing stagnant activity and accelerating inflation. The phenomenon was first recognized in the 1970s when an oil shock prompted an extended period of higher prices but sharply falling GDP growth.

RelatedPosts

Inflation Drops 160 basis points to 12.1% in July, Lowest Rate Since October 2021

Kwaku Azar Writes: Is Another SML Brewing at GACL?

GRA Refutes NIA’s Debt Claims, Cites Lack of Regulatory Approval and Service Agreement

Read Also: NGX stocks reverse losing streak, post YTD gains first time since January

“A worrying sign is the passthrough of inflation from input prices to output prices. The input price inflation has been high for many months by now, driven by the rising commodity prices,” Zhang wrote. “But the jump of [the] output price index in Oct is alarming.”

He said that indicated inflationary pressure is being passed from upstream to downstream firms. Upstream refers to input materials needed to produce goods, while downstream operations are those closer to the customers, where products get made and distributed.

“We could clearly see the … industrial stagflation in China because of the strengthening output index, at the same time seeing a strong increase in the price index. So, the industrial sector is clearly in a very difficult situation,” Raymond Yeung, chief economist of greater China at ANZ, told CNBC’s “Squawk Box Asia” on Monday.

Factory output was held back by reduced power supply, material shortages and high input costs, according to respondents of the manufacturing PMI survey, Capital Economics said in a note on Monday. China is currently facing a severe power crisis, as it grapples with a coal shortage.

“This resulted in firms having to draw down further on their inventories and longer delivery times. More notably, these shortages and the rising prices of raw materials are feeding through to higher output prices,” said Sheana Yue, assistant economist at Capital Economics.

Source: cnbc
Via: norvanreports
Tags: ChinaChina’s economy is showing signs of stagflationCOVID-19 pandemiceconomists warn
No Result
View All Result

Highlights

Tullow Oil Posts $61 Million Loss for H1 2025 on Lower Oil Prices, Reduced Output

A Turning Point for Ghana’s Payments Industry: Why Clara’s Appointment at GHiPSS is Exactly What the Future Demands 

Appiah Adomako Writes: Why Government Must Take Interest in Who Acquires Shoprite Stores in Ghana

Cocoa Farmers to Protest Against GHS 3,228 New Farmgate Price on August 11, Demand GHS 4,000 per Bag

Top 10 African Countries With the Weakest Currencies in July 2025

U.S. Demands $15,000 Deposit for Visa Applicants From Zambia and Malawi

Trending

Business

Inflation Drops 160 basis points to 12.1% in July, Lowest Rate Since October 2021

August 6, 2025

Inflation Drops 160 basis points to 12.1% in July, Lowest Rate Since October 2021 Ghana’s year-on-year inflation...

Kwaku Azar Writes: Is Another SML Brewing at GACL?

August 6, 2025

GRA Refutes NIA’s Debt Claims, Cites Lack of Regulatory Approval and Service Agreement

August 6, 2025

Tullow Oil Posts $61 Million Loss for H1 2025 on Lower Oil Prices, Reduced Output

August 6, 2025

A Turning Point for Ghana’s Payments Industry: Why Clara’s Appointment at GHiPSS is Exactly What the Future Demands 

August 6, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.