3 reasons why #China could have a potentially tumultuous decade #economy

#MortgageCrisis
• Developers can't make payments and projects have halted
• However people in China buy a place before it's built, leaving people with no place delivered. In response people have stopped making mortgage payments
• Overdeveloping and overleveraging from the developers have created a building bubble in the RE sector

#realestate #realestatebubble
 
Slowing growth #GDP
• China has seen slowed growth over the past decades
• Part of this is going from the emerging stage to developed stage
• However, more concerning are:
◦ #Zerocovidpolicy - causing a slow down of business
◦ Former one-child policy has led to an #ageingpopulation
◦ As generation from GLF retire - China could see a shrinking work force
 
Conflict
• Growing tensions with US over numerous issues, just pick one.
• Potential war with #Taiwan
◦ Very costly to #Chineseeconomy
◦ And would likely invoke economic warfare from the West.

[WBCY]

We buy new homes here in the west before they are finished too.

Like townhouses and single family homes are bought before their foundations are even built