China’s gross domestic product (GDP) between April and June increased by 4.7 percent year-on-year and 0.7 percent quarter-on-quarter, according to data from the country’s National Bureau of Statistics published yesterday.
The second quarter result marks a slowdown in comparison to the first, which witnessed a better than expected growth rate of 5.3 percent. It also falls short of analyst forecasts, which anticipated an increase between 5 to 5.3 percent. The second quarter increase also represents the lowest year-on-year growth for the world’s second largest economy since the first quarter of 2023.
Overall, China’s GDP for the first six months of this year totalled approximately 61.68 trillion yuan, an increase of 5 percent year-on-year. In its explanation of the slowing growth, the National Bureau of Statistics cited a number of short-term factors including extreme weather and flooding.
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The department noted that attaining the economic results this year had been “difficult,” as “global economic growth momentum has been weak, inflation is sticky, geopolitical conflicts, international trade frictions and other problems have occurred frequently, domestic demand is insufficient, enterprises are under great operating pressure, and there are many risks and hidden danger in key areas.”
To address the economic concerns, the central and local governments have been implementing measures to boost the various sectors of the economy. Property restrictions have been relaxed in some major cities, while visa restrictions have been eased in an effort to boost investment and the tourism industry.
The release of the less than ideal results coincides with the third plenum, which sees the central government’s senior officials meet for four days to discuss a number of issues, including the economy and the nation’s falling birth rate.
Earlier this year, Chinese Premier Li Qiang announced that the government was striving for a GDP growth of 5 percent in 2024. In light of the economic issues that the country is facing, analysts remain sceptical that the target can be achieved.
