China's Economic Dilemma, Apple's China Woes, US Economy Surges And Inflation Fears: Top Economy News This Week

The past week has been buzzing with intriguing economic news from the East and West. Notable economist Paul Krugman raised alarms about China’s economic stability, while Apple Inc. faced a new hurdle in China. Meanwhile, the U.S. economy surprised with strong performance, even as fears of inflation lingered.

China’s Deflationary Spiral and Xi Jinping’s Republican Resemblance

Emphasizing China’s economic woes, Paul Krugman warned of a possible significant downturn unless the administration led by President Xi Jinping revisits its communist roots. He further pointed out that China’s economic struggles are deepened by its hesitation to provide financial assistance to its citizens and businesses. Read the full article here.

Devaluation of Yuan: A Possible Solution?

As China’s economy risks falling into a debt-deflation cycle, economist Shang-Jin Wei suggested a potential remedy – devaluing the yuan. He highlighted the dangers of the dual threats of debt and deflation, which could set off a vicious cycle of dwindling demand, investment, output, and income. Read the full article here.

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Apple’s China Challenge: Ban on iPhones

China has thrown a wrench into Apple’s profit engine by implementing a ban on the use of iPhones and other foreign-branded devices by government officials. The ban extends to sensitive departments, government-affiliated entities, and state-owned enterprises. Read the full article here.

U.S. Economy: Surging Beyond Expectations

The U.S. economy has emerged as the year's unexpected star performer, prompting Federal Reserve officials to revise their 2023 growth projections. The Atlanta Fed even hinted at a potential 5.6% annualized expansion in Q3, forcing a rethink of the Fed’s 2024 interest-rate cut projections. Read the full article here.

Inflation Fears Haunting the U.S. Economy

Economist Paul Krugman warned that the U.S. economy's temporary burst of inflation could have long-term psychological and political repercussions. Despite inflation rates falling, public perception of the economy remains negative, indicating the perceived damage extends beyond jobs and prices. Read the full article here.

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