Part 6/9:
The decline in lending speaks volumes about the weakened borrowing behaviors of both households and businesses, despite the government's attempts at economic stimulation. Personal loans for consumption or small business investment have seen dramatic decreases, putting added pressure on overall economic recovery.
Economists emphasize that the outlook for China’s economic recovery remains uncertain. While there was a slight rebound in December, driven by government financing, analysts caution against viewing these numbers as a reliable indicator of health in the economy. Both domestic and external challenges, including potential tariff hikes from countries like the United States, further complicate the situation, necessitating supportive fiscal and monetary policies to foster growth.