2023-07-23 15:00:37
He gross domestic product (GDP) of China registered an expansion of 0.8% in the second quarter of the year compared to the first three months of 2023, when it had increased by 2.2%, driven by the end of the restrictions to contain the Covid-19 pandemic, according to data published this Monday by the National Statistics Office (ONE).
However, in the year-on-year comparison, between April and June the Chinese economy grew by 6.3% compared to the second quarter of 2022, when activity was limited by restrictions, after the year-on-year expansion of 4.5% between January and March.
Thus, in the first half of the year, Chinese GDP increased by 5.5% compared to the same period in 2022, including an expansion of 3.7% in the primary sector and 4.3% in industry, while the services sector grew by 6.4%.
“In the first half of the year, we faced a complex and serious international environment, as well as arduous tasks to promote reform, development and ensure stability in the country,” the Chinese statistical office said in a statement, noting that the national economy “showed good recovery momentum.”
Following the release of the second-quarter GDP data, Capital Economics China economist Sheana Yue has warned that GDP growth “slowed down more rapidly than expected” in the second quarter as the reopening momentum faded.
In general, for the analyst, the published data suggests that the recovery of the reopening slowed in the second quarter, while the signals of the high frequency data point to a persistent weakness during the first half of July.
“Given the bleak backdrop, it is not surprising that policy makers are increasingly concerned and have made some efforts to prop up the economy. But the measures so far have fallen short of what is needed to provide a significant boost to the economy,” he noted.
Thus, Capital Economics has cut its annual growth forecast for China from 6% to 5.5%, in line with the analyst consensus, given signs that production for the rest of the year appears to be weaker than previously anticipated.
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