China’s economy grows by 5% but people remain worried about future job prospects

Published

4 months ago

January 17, 2025

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China has released a slew of economic data this morning, showing its economy grew last year by a solid 5% percent, meeting the government’s target.

Other annual figures released show that total retail sales of consumer goods were up by 3.5% last year, compared to 2023.

But despite these positive indicators China’s economy is still facing challenges from the real estate crisis fallout, people are concerned about their job prospects and there is a reluctance to spend money domestically.

The misty megacity of Chongqing in southern China (population 32 million people) is a good place to take the temperature of the country’s economy.

Cathy Zhou and her mother Mrs Deng stuffed dumplings while describing their economic worries to Sky News.

Cathy has been unemployed since the end of COVID-19. She said she can’t find a job that pays her enough to live on and that salaries have halved.

“I used to be the headmaster of a training school,” Ms Zhou said. “Some of my friends have been at home for one or two years, looking for jobs, but can’t find any. They stay home, get some hope and look again.”

She added: “Before my friends would tell me they buy bags, buy clothes, but now they are shopping less and everyone is saving.”

Ms Zhou’s retired mother Mrs Deng worked in a factory for almost 30 years.

“The younger generation have less stable jobs, if they lose it they still need to pay their mortgage, so we have to save money to help them,” she said.

With Chinese New Year around the corner, the government is trying to boost consumer demand.

It’s expanded a list of subsidies to encourage people to trade in old electric products, like rice cookers and televisions, for new ones.

Last year, China announced a massive economic stimulus package to buy local government debt worth $1.4trn (£1.15trn) over five years.

On New Years Eve, China’s President Xi Jinping said: “China’s economy has rebounded and is on an upward trajectory.”

But President Xi also acknowledged there is deep worry too.

“The concerns of the people about jobs and incomes, elderly and childcare, education and medical services are always on my mind,” the president said. “This year, basic pension has been raised, and mortgage rates have dropped.”

The other concern for China has been stubbornly high youth unemployment as almost one in five can’t find a job.

Economic analyst at the Economic Intelligence Unit, Xu Tianchen, said: “I think the government is quite worried because if unemployment continues to grow, it will lead to issues with social instability and that is not something the government would tolerate.”

In 2023, President Xi told young people they would need to accept the hardship and “eat bitterness”.

But now the government appears to be softening its message and looking for levers to pull to create jobs and boost consumption.

Over a plate of steaming dumplings, Ms Zhou said: “I don’t think there is any ‘obvious’ results coming out of eating bitterness.”

Her best friend Pipi agreed: “If you want to get to the next level, you have to work harder and put in more effort than other people or you will just fall behind.”

World

Israel to allow ‘basic quantity of food’ into Gaza to avoid ‘starvation crisis’

Published

6 hours ago

May 19, 2025

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Israel to allow 'basic quantity of food' into Gaza to avoid 'starvation crisis'

Israel has said it will allow a “basic quantity of food” into the besieged enclave of Gaza to avoid a “starvation crisis” following a near three-month blockade.

Israeli Prime Minister Benjamin Netanyahu’s office said the decision was “based on the operational need to enable the expansion of the military operation to defeat Hamas“.

Gaza, where local authorities say more than 53,000 people have died in Israel’s 19-month campaign, has been under a complete blockade on humanitarian aid since 2 March.

It comes as global food security experts warn of famine across the territory and after a UN-backed report from last Monday which warned one in five people in Gaza were facing starvation.

The statement from the prime minister’s office said it would “allow a basic quantity of food to be brought in for the population in order to make certain that no starvation crisis develops in the Gaza Strip”.

“Such a crisis would endanger the continuation of Operation ‘Gideon’s Chariots’ to defeat Hamas,” it added.

“Israel will act to deny Hamas’s ability to take control of the distribution of humanitarian assistance in order to ensure that the assistance does not reach the Hamas terrorists.”

It comes after a British surgeon working in Gaza said in a video to Sky News the enclave is now “a slaughterhouse” amid Israeli bombardment.

Israel has just ramped up its offensive in Gaza – where it’s been conducting a military campaign in retaliation for 1,200 people killed and 251 taken hostage by Hamas on 7 October 2023 – with Palestinian health officials reporting at least 130 people were killed overnight into Sunday.

Israel Defence Forces (IDF) confirmed troops had begun “extensive ground operations throughout the northern and southern Gaza Strip”.

The Hamas-run health ministry in Gaza said 464 people had died in Israeli military strikes in the week to Sunday.

In a statement on Sunday, IDF said its air force struck “over 670 Hamas terror targets throughout the Gaza Strip to disrupt enemy preparations and support ground operations” over the past week.

Israel has launched an escalation to increase pressure on Hamas, seize territory, displace Palestinians to the south and take greater control over the distribution of aid.

World

Nicusor Dan beats hard-right favourite George Simion in surprise win in Romanian election

Published

18 hours ago

May 18, 2025

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Nicusor Dan beats hard-right favourite George Simion in surprise win in Romanian election

Pro-Western candidate Nicusor Dan has unexpectedly beaten hard-right populist George Simion in the Romanian presidential election.

Mr Simion, 38, and his rival – a centrist who’s mayor of Bucharest – faced off in the second round of the contest.

According to the official tally, Mr Dan was leading by nearly nine percentage points with more than 98% of the votes counted.

After exit polls suggested he wasn’t going to win, Trump-supporting Mr Simion rejected the result and said estimates put him 400,000 votes ahead.

Speaking after voting ended, Mr Simion said his election was “clear” as he posted on Facebook: “I won!!! I am the new President of Romania and I am giving back the power to the Romanians!”

Romania’s last election was annulled after its highest court ruled the leading candidate, nationalist Calin Georgescu, should be disqualified due to claims of electoral interference by Russia.

The result is surprising because in the first round, 38-year-old Mr Simion, founder of the right-wing Alliance for the Unity of Romanians (AUR), took 40.96% of the vote – almost 20 points ahead.

An opinion poll on Friday had it much closer, but still suggested the two men were virtually tied.

Mr Dan, a 55-year-old mathematician, is running as an independent and has pledged to clamp down on corruption.

He is also staunchly pro-EU and NATO, and has said Romania’s support for Ukraine is vital for its own security.

When voting closed at 9pm local time, 11.6 million people – about 64% of eligible voters – had cast ballots. About 1.64 million Romanians living abroad also took part.

The election is being closely watched across Europe amid a rise of support for President Donald Trump.

After polls closed, Mr Dan said “elections are not about politicians” but about communities and that in the latest vote “a community of Romanians has won, a community that wants a profound change in Romania”.

“When Romania goes through difficult times, let us remember the strength of this Romanian society,” he said.

“There is also a community that lost today’s elections. A community that is rightly outraged by the way politics has been conducted in Romania up to now.”

World

Israel to allow ‘basic quantity of food’ into Gaza to avoid ‘starvation crisis’

Published

18 hours ago

May 18, 2025

admin

Israel has said it will allow a “basic quantity of food” into the besieged enclave of Gaza to avoid a “starvation crisis” following a near three-month blockade.

Israeli Prime Minister Benjamin Netanyahu’s office said the decision was “based on the operational need to enable the expansion of the military operation to defeat Hamas”.

Gaza, where local authorities say more than 53,000 people have died in Israel’s 19-month campaign, has been under a complete blockade on humanitarian aid since 2 March.

It comes as global food security experts warn of famine across the territory and after a UN-backed report issued last Monday which warned one in five people in Gaza were facing starvation.

“Such a crisis would endanger the continuation of Operation ‘Gideon’s Chariots’ to defeat Hamas,” it added.

“Israel will act to deny Hamas’s ability to take control of the distribution of humanitarian assistance in order to ensure that the assistance does not reach the Hamas terrorists.”

It comes after a British surgeon working in Gaza said in a video to Sky News the enclave is now “a slaughterhouse” amid Israeli bombardment.

Israel has just ramped up its offensive in Gaza, with Palestinian health officials reporting at least 130 people were killed overnight into Sunday.

Israel Defence Forces (IDF) confirmed troops had begun “extensive ground operations throughout the northern and southern Gaza Strip”.

The Hamas-run health ministry in Gaza said 464 people had died in Israeli military strikes in the week to Sunday.

Israel has launched an escalation to increase pressure on Hamas, seize territory, displace Palestinians to the south and take greater control over the distribution of aid.

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