Beijing, India’s neighboring country Sri Lanka has recently worsened due to economic crisis. After the resignation of Gotabaya Rajapaksa, Prime Minister Ranil Wickremesinghe has been made the acting president in Sri Lanka. Meanwhile, Ranil Wickramasinghe has declared a state of emergency across the country. Reports are coming out that one more neighboring country of India is heading towards economic crisis.
Manufacturing activities did not pick up in July even after prolonged lockdowns were lifted in many of China’s major manufacturing hubs due to the Covid-19 pandemic. A survey report published on Sunday revealed an unsatisfactory picture of China’s manufacturing landscape.
According to this report from China’s official statistics agency and industry group China Federation of Logistics and Purchasing, manufacturing activity remained sluggish in July due to global demand and strict measures to control the spread of the virus.
Apart from this, the pace of the manufacturing sector seems to be slowing down on the front of new orders, exports and employment. This is being considered as a major blow to China’s economy, which has emerged as the world’s manufacturing powerhouse over the past two decades.
Economist Zhang Liqun said there is huge pressure on manufacturing. The effects of the epidemic are still being felt. A direct impact of declining manufacturing activities can be in the form of reduced employment opportunities.
China’s ruling Communist Party has also stopped talking about a target of 5.5 percent economic growth this year as manufacturing activity has slowed. Now they are talking about getting the maximum possible result instead of a concrete figure.
Real estate accounts for one-third of China’s $17.5 trillion economy, but most of the debt in China’s banks goes to companies in the sector. Chinese property developer Real Estate Group Evergrande Group defaulted on loans last year.
It has hit the economy here hard. Shares of Evergrande Group fell amid a cash crunch in the country, resulting in reduced investment in China.SS1MS