Falling Prices in China Could Be a Boon For the U.S.: Kiplinger Economic Forecasts
China's weakened economy shows no clear signs of improvement.
To help you understand what is going on in the world economy and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Consumer prices in China are declining as economic growth falters. Consumer price inflation finally slipped into negative territory in July, following 10 consecutive months of decline for producer prices. A prolonged slump in the country’s property market, plunging export demand, and subdued spending by consumers have weighed on the economy following an initial burst of activity in the first quarter, after Beijing scrapped its strict pandemic restrictions.
Beijing is now under more pressure to step up monetary and fiscal support. But the government won’t rush into a decision. Instead, expect officials to determine how much of the current slowdown is attributable to structural factors, such as an aging population, and thus not easily addressed by stimulus measures. China’s central bank will also act cautiously amid a weaker yuan and elevated debt.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Falling prices in China are good for countries dealing with elevated inflation, most notably the U.S., India, Germany and the Netherlands. In places where inflation is already low — Hong Kong, Japan, and South Korea — import prices could fall, on average.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
- China’s Economy Weakened by Low House Prices and Falling Exports: Kiplinger Economic Forecasts
- Key U.S. Foreign Policy Challenges in Power Struggle with China and Russia: Kiplinger Forecasts
- China’s Economy Slows, Shows No Clear Signs of Improvement: Kiplinger Economic Forecasts
- Global Factory Production Dips, but Supply Chains Improve: Kiplinger Economic Forecasts
- Rising Prices: Which Goods and Services Are Driving Inflation?
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Rodrigo Sermeño covers the financial services, housing, small business, and cryptocurrency industries for The Kiplinger Letter. Before joining Kiplinger in 2014, he worked for several think tanks and non-profit organizations in Washington, D.C., including the New America Foundation, the Streit Council, and the Arca Foundation. Rodrigo graduated from George Mason University with a bachelor's degree in international affairs. He also holds a master's in public policy from George Mason University's Schar School of Policy and Government.
-
Visa Is the Worst Dow Stock Wednesday. Here's Why
Visa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
By Joey Solitro Published
-
Another Analyst Moves to the Sidelines on Tesla Stock After Earnings
Tesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
By Joey Solitro Published
-
Taking Stock of the Presidential Race: The Kiplinger Letter
The Kiplinger Letter As Trump consolidates Republicans, Biden faces pressure to drop out.
By Matthew Housiaux Published
-
Congress Spends Big on Closing the Digital Divide
The Kiplinger Letter A massive spending program is designed to bring high-speed internet to rural and remote locations.
By John Miley Published
-
Kiplinger Special: The Long-Term Future of the U.S. Economy
The Kiplinger Letter Kiplinger's report into what it will take the U.S. to maintain a healthy economic growth rate.
By David Payne Published
-
Chinese E-Tailers Are Surging in the U.S. Market: The Kiplinger Letter
The Kiplinger Letter Low costs and cheap shipping enable Temu and others to grab market share.
By Matthew Housiaux Published
-
Why Your Electric Bill Will Keep Climbing
The Kiplinger Letter There's no end in sight for energy rate hikes, so look for ways to curb your power use.
By Jim Patterson Published
-
Future U.S. Economic Growth Hinges on Immigrants
The Kiplinger Letter With the native birthrate slipping, employers are increasingly relying on foreign-born workers to staff up.
By David Payne Published
-
Fed Rate Cuts Still on Hold
The Kiplinger Letter With inflation stubbornly elevated, the Federal Reserve will keep interest rates high for now.
By David Payne Published
-
Biden's Plans to Impose an Income Tax on Death
The Tax Letter The president has proposed a new taxing regime that would make death an income tax realization event for wealthy decedents.
By Joy Taylor Last updated