China’s Economy Faces Severe Slowdown, Worse Than Predicted

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China’s Economy Faces Severe Slowdown, Worse Than Predicted

China’s Economy Faces Severe Slowdown, Worse Than Predicted

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Recent analyses indicate China’s economy is declining faster than anticipated, with GDP growth, real estate, and exports underperforming forecasts. As the world’s second-largest economy, this rapid downturn raises global concerns. This concise article examines the key factors driving the collapse, its scope, and implications, tailored for those tracking China’s economic trajectory. The Downturn: Worse Than Expected China’s GDP growth for Q2 2025 was 5.2%, beating estimates of 5.1% but down from Q1’s 5.4%. However, July data shows a sharper decline: Real Estate Crisis: New-home sales by top developers fell 24% year-over-year, the steepest drop in 10 months, with unsold inventory exceeding two years’ demand. Export Slump: U.S.-bound exports dropped 10.9% in 2025, worsened by 145% tariffs imposed by the U.S....

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