China's Q2 GDP growth weak, more policy support urgently needed

Gross domestic product rose just 0.8% month-on-month in April-June on a seasonally adjusted basis, data released on Monday by the National Bureau of Statistics showed, in line with a Reuters poll. Analysts expected a 0.5 percent increase compared with a 2.2 percent increase in the first quarter.

Q2 GDP grew 6.3% YoY, up from 4.5% in the first three months of the year, but growth was well below the 7.3% growth forecast.

The annual growth rate is the fastest since the second quarter 52, although it is heavily distorted by the economic pain of the strict covid-19 pandemic Lockdowns were imposed in Shanghai and other major cities last year.

Carol Kong, economist at Commonwealth Bank of Australia, said: “The data suggest that China’s post-COVID boom is clearly over.” (OTC: ) in Sydney.

“High-frequency indicators are higher than May’s data, but still paint a bleak and faltering picture of recovery, while youth unemployment hits a record high.”

The latest data raises the risk that China will miss its modest growth target of 5% 75, some economists say.

More timely data for June, released alongside the GDP figures, showed China’s retail sales rose 3.1%, a sharp slowdown from the previous year . Up 7% in May. Analysts expected growth of 3.2%.

Growth in industrial output unexpectedly accelerated to 4.4% last month from 3.5% in May, but demand remained tepid.

Private fixed asset investment fell 0.2% in the first six months, in stark contrast to the 8.1% increase in state-owned enterprise investment, reflecting weak confidence among private companies. The post-pandemic recovery has faltered as exports slumped by the most in three years amid cooling demand at home and abroad and a prolonged slump in key housing markets, according to recent data. undermined confidence.

The weak overall momentum and the risk of a global recession raised expectations that policymakers will need to do more to prop up the world’s second-largest economy. Policy insiders and economists say more stimulus is likely, including fiscal spending for big infrastructure projects, consumer spending and private sector more support, as well as relaxation of some real estate policies. .

But analysts say a quick turnaround is unlikely. All eyes are on the expected Politburo meeting later this month, when the top leader will set the schedule for the remainder of the year. policy line.

There is no “silver bullet”

Asian stocks fell while 100 Chinese yuan

China's Q2 GDP growth weak, more policy support urgently needed

Shein shifts shipping strategy to bring China-made goods closer to US shoppers

Italy criticises Germany for funding migrant charity groups

China state asset manager plans $14 billion emerging industry fund -report

LEAVE A REPLY Cancel reply

USA Trends

Messi-mad Indian mom driving to Qatar to see hero in his final World Cup

Drew Brees fakes lightning strike in promotional stunt for online sportsbook

Who could be speaker, if not Kevin McCarthy

3 bold Utah football predictions for Pac-12 Championship vs. USC

LAST NEWS

Week 38 in review: Redmi Note 13 announced, iPhone 15 is now for sale

Kaede Hondo, Reiji Kawashima Star in Mission: Yozakura Family Anime

Shein shifts shipping strategy to bring China-made goods closer to US shoppers

‘Krapopolis’ Review: Dan Harmon’s New Fox Animated Comedy Is Atypically Bland

Featured NEWS

Will the Lakers trade Russell Westbrook less or more likely after the Pat Bev trade?

Interior Ministry asks court to keep parts of Rwandan rights document secret

Director Jordan Peele reflects on never-before-seen live-action Akira

Broncos QB Russell Wilson (hamstring) to start vs. Jaguars in London

EDITOR PICKS

Week 38 in review: Redmi Note 13 announced, iPhone 15 is now for sale

Kaede Hondo, Reiji Kawashima Star in Mission: Yozakura Family Anime

Shein shifts shipping strategy to bring China-made goods closer to US shoppers

POPULAR POSTS

Week 38 in review: Redmi Note 13 announced, iPhone 15 is now for sale

Kaede Hondo, Reiji Kawashima Star in Mission: Yozakura Family Anime

Shein shifts shipping strategy to bring China-made goods closer to US shoppers

POPULAR CATEGORY

ABOUT US

FOLLOW US