The state of the Chinese economy is now cause for serious concern. Positive statements from government officials have given way to Telegram channels with their loud claims that China's economy is picking up momentum.
Thus, the well-known MMI Telegram channel pleased the world community with good news about China's robust economic growth. August economic figures suggested an impressive rebound from a downturn, the channel reported, citing the National Bureau of Statistics.
Official reports stated that fixed asset investment grew by 3.2%. That missed expectations for a 3.3% increase and was slower than the 3.4% pace reported as of July. The unemployment rate stood at 5.2% in August, down by only 0.1 percentage point from the previous month. All in all, statistics for June and July proved to be worse than forecasts, which called into question the country's ability to achieve its GDP growth target. Against this backdrop, the yuan dropped to its lowest on record against the dollar, with experts starting to talk about the Chinese currency's exhausted upside potential.
Negative sentiments were reinforced by media reports that Chinese officials and experts were strictly forbidden to mention the issues of the national economy, including deflation, capital outflows, and lower producer prices.