EconExtra

Get 30 Day Free Amazon Prime - https://amzn.to/3RuJI3h A sharp rise in Chinese consumers defaulting is the latest in a lengthening list of ailments afflicting the world’s second-largest economy. The number of people blacklisted for missing payments on everything from mortgages to business loans has risen to a record 8.54mn, from 5.7mn in early 2020. This number still only accounts for about 1 per cent of the working-age population. But the rate of increase shows that even since China rolled back its pandemic lockdown about a year ago, rising financial distress at the individual level is contributing to stiff headwinds that are frustrating a broad recovery in consumer activity. Without energising consumer spending, China may struggle to drive sustainable economic growth — which the IMF is forecasting will slow next year to about 4.6 per cent, from 5.4 per cent this year. This impact of these defaults is exacerbated by an unsophisticated governance regime in dire need of reform. U...

 Get 30 Day Free Amazon Prime - https://amzn.to/3RuJI3h The Olympic Games is the most prestigious sporting event in the world attracting the world’s best athletes to compete against each other whilst being watched by millions across the world. Host Nations spend billions building stadiums, homes and other facilities used by athletes to make the city Olympic-ready, but is all this government spending worth it? China spent $45 billion on its 2008 Summer Olympics. Its hopes were that all this spending will boost the economy of Beijing and the rest of China. By spending so much money building new infrastructure, thousands of jobs in architecture and construction were created. It is estimated that 70000 people worked on construction for these Olympic games, reducing unemployment in Beijing by 15%. Furthermore, many jobs were created during the games themselves. Due to an influx of tourists, many sectors such as hospitality increased the number of jobs due to increased demand. An i...