Schrijf je in voor onze dagelijkse nieuwsbrief om al het laatste nieuws direct per e-mail te ontvangen!

Inschrijven Ik ben al ingeschreven

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

No other major world economy is facing deflation except China

China has been experiencing negative consumer prices for several months, a unique situation among major world economies. This deflationary trend stems from a collapsing real estate market, pervasive bearish sentiment, and weakened consumer confidence. In January 2024, China saw a 0.8% year-on-year decline in consumer prices, marking the fourth consecutive month of decreases and the sharpest drop in fifteen years.

Photo © Engdao Wichitpunya |

Factors like industrial overcapacity and a recession in the real estate sector contribute to this deflation. The prolonged real estate downturn has also affected household goods and housing prices, with home sales dropping by 6.5% last year. The International Institute of Finance (IIF) warns that deflation could further dampen consumer and investor spending, decrease nominal GDP, increase the debt-to-GDP ratio, and negatively impact investment and consumption due to declining asset prices and reduced wealth.

Source: Finance Yahoo

Publication date: