The pace of China’s recovery rose moderately in the second quarter, after signs of the world’s second-largest economic downturn aroused greater expectations. Policy support..
According to the National Bureau of Statistics, China’s gross domestic product increased 1.3% on a quarterly basis in the three months to the end of June, up from 0.4% in the previous quarter. According to Bloomberg and Reuters polls, economists forecast quarterly growth of 1-1.2%.
Second-quarter GDP increased 7.9% year-on-year. 18.3% In the first quarter. The high growth in the first quarter reflects the almost complete outage of economic activity in early 2020 after the Covid-19 pandemic. Central China He forced the government to impose a national blockade.
NBS data release Tensioned junction For China’s economic planners trying to balance financial stability and growth.
NBS spokesman Alicia Liu told reporters in Beijing that the economy continued to “steadily recover,” but warned of the outlook and that the recovery was “imbalanced.”
“It should also be noted that the coronavirus continues to mutate globally and there is a lot of external instability and uncertainty,” she said.
Signs of downward pressure on China’s recovery have prompted speculation that Beijing will release more policy support to strengthen corporate confidence and employment and raise spending.
But such slack poses an undercut threat policy Introduced in Reduce leverage A series of Bond default The end of last year.These problems are Especially acute Concerns about financial system instability are rising among state-owned enterprises in central and northern states.
ChinaThe first big economy to break out of the blockade last year has been carefully watched by other economies working on fragile recovery and the effects of the crisis.
Country exports have exceeded market expectations for most of this year, with parts of the United States and Europe easing social distance measurements and returning to growth.However Rapid spread of Covid-19 delta variants He questioned external demand in the second half of this year.
Manufacturers all over Asia also Rapid price increase And Sudden supply constraints Hit important industrial inputs.There are also delays in shipping and shortages of raw materials. Drive fear of confusion..
Still, according to NBS, China’s industrial production increased by 8.9% year-on-year.
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Investment in fixed assets, which tracks spending in key areas such as infrastructure and real estate, increased 12.6% year-on-year in the first half of 2021.
Various sentiments about China’s domestic consumption have also raised concerns about the health of the service sector.
June retail sales increased 12.1%. Compared to 12.4% in May and 17.7% in April, NBS data highlighted continued pressure on domestic consumer spending and uneven economic recovery.
According to NBS, the unemployment rate in urban areas was 5%, down from 5.3% at the end of the first quarter. The unemployment rate for people aged 16 to 24 has risen from 13.6 percent to 15.4 percent, highlighting another important challenge in Beijing.
Additional report by Xinning Liu in Beijing and Hudson Lockett in Hong Kong
China warns of economic uncertainty despite a gradual recovery in the second quarter
Source link China warns of economic uncertainty despite a gradual recovery in the second quarter