BEIJING: China’s economy grew at a frail pace in the second quarter, although the annual figure was flattered by base effects, data showed on Monday (Jul 17), with overall momentum faltering rapidly due to weakening demand at home and abroad.
Gross domestic product grew just 0.8 per cent in April to June from the previous quarter, data released by the National Bureau of Statistics showed, versus analysts’ expectations in a Reuters poll for a 0.5 per cent increase and compared with a 2.2 per cent expansion in the first quarter.
On a year-on-year basis, GDP expanded 6.3 per cent in the second quarter, accelerating from 4.5 per cent in the first three months of the year, but the rate was below the forecast for growth of 7.3 per cent. The annual pace was the quickest since the second quarter of 2021, but the reading was heavily skewed by economic pains caused by stringent COVID-19 lockdowns in Shanghai and other major cities last year.
“China’s Q2 GDP growth surprised on the downside, with headline reading at 6.3 per cent … Obviously, we might have to embrace a new wave of growth outlook downgrade in the next couple of days,” said Zhou Hao, an economist at Guotai Junan International,
“However, the 5 per cent growth target looks very attainable.”
For June alone, China’s retail sales grew 3.1 per cent, slowing sharply from a 12.7 per cent jump in May, the data showed. Analysts had expected growth of 3.2 per cent.
