While many Western nations battle inflation, China’s economy has slipped into deflation. That could have big consequences for the global economy – slowing growth in China would be a major drag on world trade. It was thought China’s consumers would rush to the tills once the country was freed from its two years of rolling COVID lockdowns However, low consumer confidence has meant the country now appears to be entering an era of slower economic growth, causing prices and wages to stagnate.
World watches nervously as deflation stalks China’s economy
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