New Delhi, April 3: A new report suggests that China’s official economic growth figures may be misleading. The country’s economy faces serious threats from rising bad debt and an aging population. According to the Japanese news site Nippon.com, estimates from the American think tank Rhodium Group indicate that China’s real economic growth in 2025 is closer to 2.5-3.0 percent, rather than the 5 percent reported by the government.
The report cites several China experts who believe the nation is currently experiencing virtually zero growth. It highlights two major obstacles to China’s economic future: massive bad debt and a declining birth rate, leading to an ‘inverted population pyramid.’
Inflationary pressures are also noted, showing no signs of abating, with real growth lagging behind nominal growth for the past three years. Additionally, the report mentions a projected 1.7 percent decline in total government revenue in 2025, marking the first decrease since the COVID-19 pandemic hit in 2020.
Signs of economic strain are visible on social media and at the grassroots level. Closed shops on shopping streets, empty malls, and homeless individuals searching for food or sleeping in underpasses illustrate the situation.
The report also argues that some economists in China estimate youth unemployment rates to exceed 40 percent. The country’s population peaked in 2021, with only 7.92 million children expected to be born in 2025, down from 15 million in 2018.
The media outlet attributes China’s dire economic condition to President Xi Jinping’s mismanagement, which has favored large state-owned enterprises while stifling innovation.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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