China began to lose its role as the locomotive of the world economy

China began to lose its role as a locomotive of the world economy and began to become a source of volatility for it.

China began to lose its role as the locomotive of the world economy

This opinion was shared by experts during the conference “Crop production in Russia”, writes RIA Novosti.

“China ceases to be such a locomotive of the world economy, as it was from 2008 to the current period,” says Daria Snitko, head of the Gazprombank Center for Economic Forecasting.

According to her, from the amount of information available, it is clear that China has been undergoing a lot of regulatory changes lately, for example, with respect to domestic prices for all goods, and even for real estate.

“There is a certain pressure to fight the rich middle class, which until recently the Chinese government was betting on,” the expert said.

Snitko recalled that China’s interest in a product has always been a signal of demand for the global market. Now, the Chinese economy, she continued, is faced with a growth problem, because “the population has stopped growing as it was before, and there are certain factors of slowdown.”

Dmitry Rylko, Director General of the Institute for Agrarian Market Studies (IKAR), has a similar point of view.

“We view China as, firstly, a source of dire volatility and uncertainty, and secondly, in the short term, as a source that prices could crash,” he said, drawing attention to the long-term demographic risks in relation to the agro-industrial complex.

The expert notes that hundreds of millions of people used to enter the age when they ate a lot of meat, and its consumption grew rapidly. This population is entering a different age, when less meat is eaten.

“And this, in my opinion, is a colossal source of instability and our possible disappointment with you. I would like to be mistaken”. 

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