6.3% growth may sound strong. And in a country like Holland it would be. However, the Chinese figure is disappointing. “Especially because compared to the second quarter of last year,” says De Jong, “when the Chinese economy contracted.”
But even if the growth is compared to the previous quarter, it’s far from impressive. The world’s second largest economy is now 0.8% larger than the previous quarter. This is also very little by Chinese standards.
Youth unemployment is growing
Economists’ expectations were much higher. “After the lockdowns ended last year, everyone thought a burst of growth would follow,” says De Jong. ‘Growth that has been much higher than in previous years. But it didn’t happen.’
The economist is particularly concerned about the growing youth unemployment in the country. ‘For 16-24 year olds, this has now risen to 21.3 per cent. Earlier this year it was just 17 percent and in 2021 it will be 13 percent. This is a growing problem and also risks becoming a serious social problem.
Positive and negative consequences for the Netherlands
For the Netherlands, the disappointing figures are one mixed bagDe Jong says. “Germany is a major exporter to China and many Dutch companies are suppliers to these companies.” In this way it comes to us. “On the other hand, the slowdown in the Chinese economy is leading to a decline in commodity prices on the global market,” says De Jong. “That puts pressure on inflation for us, and that in turn is good.”