Impact of the slowing economy - Domestic consumer spending tanks, trade falls

China was expected to recover and give the global economy a boost after it abandoned its zero-Covid policy and reopened its borders in late 2022. Yet, domestic consumer spending has tanked, and trade has fallen. “There is still a sense of fear and uncertainty following the shock of the pandemic lockdowns, which were among the most severe in the world,” said NTU professor of economics Tan Kong Yam of the country’s three-year lockdown. “Chinese consumers are still very risk-averse and fearful of losing their jobs and income if things turn bad again. The consumer psychology in China now is not to consume but to save cash for rainy days ahead.” 

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