China’s economic recovery pace grew modestly in the second quarter following signs of slowness in the world’s second-largest economy which has boosted expectations further. political support.
On a quarterly basis, China’s gross domestic product grew 1.3 percent in the three months to the end of June, up from 0.4 percent in the previous quarter, the National Bureau of Statistics said. he said Thursday. Economists had forecast quarterly growth of 1 to 1.2 percent, according to Bloomberg and Reuters polls.
Second-quarter GDP was 7.9 percent higher than a year earlier, compared to year-over-year growth 18.3 percent in the first quarter. The high growth in the first quarter reflected an almost complete cessation of economic activity in early 2020 following the Covid-19 pandemic erupted in Central China and forced the government to impose a national closure.
NBS data release comes at a tense conjuncture for China’s economic planners seeking to balance financial stability with growth.
Liu Aihua, a spokesman for the NBS, told reporters in Beijing that the economy had continued to “recover steadily” but warned of the outlook and said the recovery was “unbalanced.”
“We should also be aware that coronavirus continues to mutate around the world and external instability and uncertainty abound,” he said.
Signs of downward pressure on China’s recovery have sparked speculation that Beijing will garner more political support to boost business confidence and employment and raise spending.
But any such relaxation threatens to crumble policies presented to reduces the lever and deal with a series of defects of good at the end of last year. These problems are especially acute among state-owned enterprises in the central and northern provinces, raising concerns about the instability of the financial system.
China, the first major economy to go out of a blockchain last year, has been closely watched by other economies struggling with fragile recoveries and the effects of the crisis.
The country’s exports for much of this year have exceeded market expectations, stimulated by the United States and parts of Europe by easing social distancing measures and returning to growth. Ma u Rapid spread of the Delta Covid-19 variant it called into question external demand in the second half of the year.
Manufacturers across Asia have also been blinded by strong price increase and immediate supply limitations affects important industrial inputs. Shipping delays and lack of raw materials have also increased fears led to disturbances.
However, according to the NBS, China’s industrial production grew by 8.9% compared to the same period a year earlier.
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Investment in real estate, which tracks spending in crucial sectors such as infrastructure and property, grew 12.6 percent year-over-year in the first half of 2021.
The mixed sentiment on China’s domestic consumption has also raised some concerns about the health of the services sector.
Retail sales rose 12.1 percent in June. That compared with 12.4 percent in May and 17.7 percent in April, NBS data show, showing continued pressure on domestic consumer spending and an uneven economic recovery.
The urban unemployment rate was 5 percent, the NBS said, up 5.3 percent at the end of the first quarter. The unemployment rate for people aged 16 to 24 has risen to 15.4 percent from 13.6 percent, underscoring another key challenge for Beijing.
More information from Xinning Liu in Beijing and Hudson Lockett in Hong Kong