World News

The pace of economic recovery in China is falling

According to data from China’s National Bureau of Statistics released Thursday, China’s economy grew slightly slower than forecast in the second quarter due to higher raw material costs and new outbreaks of Covid-19.

From April to June, the PRC’s gross domestic product (GDP) grew by 7.9% on an annualized basis over the same period last year. Economists had expected GDP growth to be 8.1%.

Economic development slowed significantly compared to 18.3% in the first quarter due to the low statistical base in 2020 due to the crisis caused by the Covid-19 pandemic.

Every quarter, GDP grew 1.3% between April and June from 0.6% in the previous three months. Economists had expected this figure at 1.2%.

According to NBS, the average growth in the second quarter in 2020 and 2021 was 5.5%, compared with 5% in the first quarter.

The world’s second-largest economy is posting a solid recovery from the Covid crisis due to strong export demand and political support from the NBK. Still, the latest data released shows some slowdown.

“The domestic economic recovery is uneven,” said Liu Aihua, an NBS spokeswoman.

“We also see that the global Covid epidemic continues to evolve rapidly, and there are many external volatile and uncertain factors,” she added.

A separate report from the National Bureau of Statistics showed that China’s industrial production rose 8.3% in June from the same period last year and fell from 8.8% in May. Economists had expected growth of 7.8% in annual terms.

Retail sales rose 12.1% year-on-year after increasing 12.4% in May. Economists had forecast sales growth of 11%.

In June, investment in fixed assets rose by 12.6% annually, down from 15.4% recorded in May. Experts had expected the figure at 12.1%.

NBS reported that China’s unemployment rate remained at 5.0% in June.

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