China likely to see trade deficit in 2023: Report

China is likely to see a trade deficit in 2023, dragging down GDP growth and depressing profits and employment in the manufacturing sector, The Hong Kong Post reported, adding that there is a clear message that markets should not be too optimistic about Chinese growth this year, according to comments seen on the Chinese microblogging website Sina Weibo. After the end of China’s ‘Zero Covid’ policy in December 2022, there were hopes for economic recovery in China, the report said, adding that deteriorating confidence of households, coupled with the unresolved difficulties in the housing sector, weighed on the country’s growth rebound. According to preliminary economic data in February, overall growth in China is not yet roaring back. Turnover in freight transport is still down from a year ago. The country’s home sales remained below last year’s levels. New home sales were dragged down by falling sales in mid-sized cities. The unemployment rate is still high which keeps household confidence weak. Amid the current crisis, some banks in the country are resorting to drastic measures, including allowing people to pay off mortgages until they are 95 years old. Some banks in the cities of Nanning, Hangzhou, Ningbo and Beijing have extended the upper age limit on mortgages to between 80 and 95.