Which country has deflation?

China is a perfect example of an economy with deflation or dangerously low inflation.

Is Germany in deflation?

Germany is on the borderline of deflationary. This is the conclusion reached in a study recently pub- lished by the IMF with the express approval of the IMF's chief economist, Kenneth Rogoff.

Is China in a deflation?

China's deflationary slide is worsening as companies spiral into price wars. There's a pattern in China: companies rush into an industry, then resort to discounts to stay afloat.

Is the UK in deflation?

Deflation looms in the UK, and its potential impact on the economy is becoming a growing concern. Recent data shows that in December 2025, UK shop prices saw their sharpest decline in over 3 years, with annual shop price deflation reaching 1%, up from 0.6% in November.

What is a real world example of deflation?

Deflation can be caused by a decrease in demand for certain goods, an increase in supply, and a decrease in the availability of funds or credit. There have been a few periods of deflation in U.S. history, most notably the Great Depression and the Great Recession.

Factories Silent, Homes Worthless – China’s Economic Nightmare

What countries are having deflation?

How to survive deflation?

Deflation hedges include investment-grade bonds, defensive stocks (those of consumer goods companies), dividend-paying stocks, and cash. A diversified portfolio that includes both types of investments can provide a measure of protection, regardless of what happens in the economy.

Who benefits from deflation?

During deflation, lenders gain because the money they get back is worth more, while borrowers suffer as they owe more in real terms. It's like lending 5 candies and getting back 7.

Which is worse, inflation or deflation?

It depends. Deflation can be worse than inflation if it is brought about through negative factors, such as a lack of demand or a decrease in efficiency throughout the markets.

Is bitcoin deflationary?

Mining difficulty has increased substantially[1], and as a result, each new BTC is increasingly expensive, making BTC deflationary. As the overall supply decreases, the intrinsic value of the currency increases, and its purchasing power goes up accordingly.

Is Germany in recession?

Takeaways by Bloomberg AI

Germany's economy succumbed to a recession in late 2022 and didn't grow for the two years that followed, according to revised statistics. The updated series reveals six declines in output over seven quarters, interrupted only by stagnation in the summer of 2023.

What happens if a country has deflation?

Deflation occurs when the inflation rate falls below 0% and becomes negative. While inflation reduces the value of currency over time, deflation increases it. This allows more goods and services to be bought than before with the same amount of currency.

Will the economy get worse in 2025?

How Badly Will Uncertainty Hurt US GDP Growth in 2025? The US economy will grow in 2025–26, but tariffs and other factors are dampening expectations. The US economy is expected to grow by 2.0% this year and 1.7% in 2026, according to The Conference Board—both revised down from previous projections.

Is France in recession in 2025?

However, the French economy would avoid recession, with growth of 0.3% in 2025 and 0.7% in 2026.

Who is hurt during deflation?

Deflation particularly harms borrowers, who must pay their debts with money that is worth more than when they borrowed, as well as any financial market participants who invest or speculate on the prospect of rising prices.

Is the French economy growing?

GDP Growth Rate in France is expected to be 0.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the France GDP Growth Rate is projected to trend around 0.40 percent in 2026 and 0.50 percent in 2027, according to our econometric models.

Why is deflation scary?

Not only does deflation signal a stagnating economy, it can lead to high unemployment, unaffordable debt repayment, and dismal outcomes for businesses.

What happens to stocks during deflation?

The nominal values of stocks tend to decline in periods of deflation, but stocks tend to be less affected by changes to consumer prices than bonds. That is why returns are not as high as those of bonds and cash, which are directly linked to the value of currency.

Who does deflation hurt the most?

Many people have some sort of debt, eg a mortgage, a student loan or a credit card. Deflation can make it more expensive to repay your debts because, regardless of the general prices for goods and services, the amount of money you owe remains the same.

Is Europe at risk for deflation?

Deflation may soon be the main concern in the Eurozone. Yes, you read that right! Less than three years after inflation peaked at over 10% in October 2022, the Eurozone is now facing deflationary risks. The economy has slowed dramatically, and inflation just fell below target.

Which country has no inflation?

Many of the lowest inflation rates around the world are located in Asia, including Macau, China, Hong Kong, and Taiwan.

Is deflation possible in Canada?

On very rare occasions, prices may go back down. This is called deflation. Canada has had very few periods of deflation. The only significant instance of deflation occurred during the Great Depression in the 1930s.

Is gold deflationary?

Historical Patterns in Deflationary Cycles

These historical examples demonstrate that while deflation generally harms most asset classes, gold has often maintained or increased its value during severe deflationary episodes—particularly when accompanied by financial system stress.

What is Bitcoin backed by?

Bitcoin is not backed by gold, silver, or government promises. Instead, it draws value from its unique combination of scarcity, utility, decentralization, and trust in the blockchain. This innovative design has made Bitcoin a revolutionary financial technology.

Who created Bitcoin?

Key Takeaways. Satoshi Nakamoto is the pseudonym for whoever penned the original Bitcoin whitepaper and is the identity credited with inventing Bitcoin itself.