Kathmandu. China is the second largest economy in the world after the United States. However, it has been facing deflation for many years. <\/p>\n
Deflation refers to the fall in the price of goods and services. This means that Chinese companies are producing more goods than demand allows. As a result, they are forced to sell goods at a lower price. <\/p>\n
The GDP deflator declined by 0.07 percent in the fourth quarter of fiscal year 2025. It is a measure of prices across the country. Deflation in China shows no signs of stopping anytime soon. <\/p>\n
The GDP deflator has declined for the 11th consecutive quarter. This is the longest period of deflation in at least 30 years. <\/p>\n
During the 2008 financial crisis, deflation in China lasted only two quarters. Producer prices in China fell 1.4 percent in January. This is the 40th consecutive month of decline in factory deflation. <\/p>\n
Consumer demand is already significantly weaker due to the crisis in China’s property market. Many experts say that China is stuck in recession. \u2019<\/p>\n
Alarming for the world<\/strong><\/span><\/p>\n }<\/p>\n Deflation in China is expected to last for a long time. Deflation is usually caused by a decline in the supply of funds and credit in the economy. This raises fears that China’s economy could become as stable as Japan’s. Japan’s economy was once growing faster and was expected to surpass that of the United States. However, deflation stabilized in Japan’s economy during the 1990s. <\/p>\n This is the reason why deflation in China is a matter of concern for the whole world. Because China has been the engine of the global economy for the last few decades. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. China is the second largest economy in the world after the United States. However, it has been facing deflation for many years. Deflation refers to the fall in the price of goods and services. This means that Chinese companies are producing more goods than demand allows. As a result, they are forced to sell […]<\/p>\n","protected":false},"author":16,"featured_media":287513,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-287516","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/287516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=287516"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/287516\/revisions"}],"predecessor-version":[{"id":287517,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/287516\/revisions\/287517"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/287513"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=287516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=287516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=287516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}