China’s Economy Slows with 6.3% Growth in Q2, Failing to Meet Expectations

China’s Economy Grows by 6.3% in Q2 Amid Slowdown in Momentum

Hong Kong (CNN) – China’s economy expanded by 6.3% in the second quarter of this year compared to the same period last year. However, the momentum slowed down from the strong reopening in the first quarter. According to data from the National Bureau of Statistics (NBS), the gross domestic product (GDP) grew just 0.8% from April to June, falling below the expectations of economists polled by Reuters.

The growth figures can be attributed to a low base in the second quarter last year when the country was still grappling with harsh Covid-19 lockdowns. The global pandemic had a significant impact on the world’s second-largest economy, including in financial hub Shanghai. However, the economy rebounded strongly in the first quarter this year after the lifting of pandemic restrictions, with GDP growing at 4.5%.

Despite the initial recovery, recent economic figures indicate a loss of momentum in China’s economic growth. The latest data released on Monday confirms that the growth has indeed lost steam. Retail sales in June increased by 3.1%, the slowest growth since December when most pandemic restrictions were lifted. Industrial output expanded by 4.4% in June, while fixed asset investments rose by 3.8% during the same month.

Additionally, China’s youth unemployment hit a record high, with the jobless rate for individuals aged 16 to 24 reaching 21.3% in June. This surpassed the previous record of 20.8% set in May.

As the situation continues to unfold, further updates will be provided on this developing story.

[Title: China’s Economic Growth Slows in Q2, Despite Initial Recovery]

[Introduction: China’s economy grew by 6.3% in Q2, but momentum slows down from strong reopening in Q1. Recent economic figures show a loss of momentum, with retail sales and youth unemployment on the rise.]

China’s economy expanded by 6.3% in the second quarter of this year, compared to the same period last year, according to data from the National Bureau of Statistics (NBS). However, the pace of growth slowed down from the strong reopening experienced in the first quarter. The gross domestic product (GDP) only grew by 0.8% from April to June, falling short of expectations from a group of economists polled by Reuters.

The sluggish growth in the second quarter can be attributed to the low base effect from the previous year when China faced strict Covid-19 lockdown measures. These lockdowns had a significant impact on various sectors, including the financial hub of Shanghai. However, the economy rebounded strongly in the first quarter of this year with a 4.5% growth in GDP, following the lifting of pandemic restrictions.

Despite the initial recovery in Q1, recent economic data suggests a loss of momentum in China’s economic growth. Retail sales in June grew by a mere 3.1%, the slowest growth rate since December when most pandemic restrictions were lifted. Industrial output also expanded by 4.4% in June, a modest increase compared to previous months. Furthermore, fixed asset investments only rose by 3.8% during the same month.

In addition to the tepid growth, China’s youth unemployment rate reached a record high with 21.3% of individuals aged 16 to 24 unemployed in June. This figure surpassed the previous record of 20.8% set in May, highlighting the challenges faced by young jobseekers in the country.

As the situation continues to unfold, further updates will be provided on this developing story.