China is facing a food pandemic with a barrage of social tranquilizers and the Red Bull economy, and now is the time to deal with the pain of cabbage. The second largest global economic growth rate will be 2.3% in 2020, thanks to the medium duration of the pandemic, an increase in exports and a credit crunch. But the fiscal tension of local governments is deep, social frictions are rising and the private sector is falling apart.
The military-type confinement imposed on the Popular Republic has the merit of controlling the contagion. This allows a return to normalcy, allowing the factories to operate and produce medical devices to meet the demand of the extraterrestrial.
To maintain the other parts of the engine in operation, local governors issue record amounts of debt to increase the guest. The central bank has a conservative in view of the types of interest in comparison with its western counterparts, but new provisions are made for a total of 3 trillion dollars, which will increase the amount by 20% in 2019.
Without embarrassment, the guest in open infrastructure structures will create, which suggests a range of promoter projects: some of the billions of yuan collected in bonus markets are likely to be renovated. With the increase in debt and the reduction of incomes, in addition to the obligations to host more medical services, many local governments are very stressed, which contributes to a series of inconvenient surpluses on the part of state employees. Guosheng Securities estimates 22 of the 31 regions that already have a 300% deuda / ingresos ratio. In the province of Hubei, where the viral epicenter of Wuhan is located, is 643%.
Although the emergence media have reviewed the crime rate of the titular, the consumption and the private inversion necessary to rate the recovery is already fragile. Although the statistics for example are relatively stable, many companies record the salaries or wages of employees.
There are many pekin aids in the pipeline, the availability of available increments of only 2.1% in 2020, and a 5.8% increase in 2019. Private investment in only 1% growth in 2020 , while the state increased by 5.3%. Sales below mean a 3.9% increase of 8% in 2019.
There are more common questions. Although many Chinese are expanding their collective capacity to contain the Covid-19 while the United States is also struggling, a year of economic and psychological stress has preceded the billing. The media suicides about suicides and violent crimes have been rampant, and now more than 100 million people in northern China are being resettled. This year will be more difficult than before.