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China’s Expansion Rate Skids to 27-Year Low
China reports its gross domestic product grew 6.2% in the second quarter, down from 6.4% in January-March, to the slowest pace since at least 1992.
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China reports its gross domestic product grew 6.2% in the second quarter, down from 6.4% in January-March, to the slowest pace since at least 1992.
Factory output rose more than 6% in June year-on-year, a percentage point stronger than in May, according to government data. But analysts doubt that pace is sustainable. Nomura Group estimates that manufacturing investment growth slowed to 5.6% in April-June compared with 6.5% in the first quarter.
China’s exports accounted for 21% of GDP growth, down from 23% in the first quarter. But both exports and imports shrank from volumes in the first quarter.
Economists blame much of the slowdown on the impact of the U.S.-China trade war. But they also cite a general cooling in global growth. They don’t expect a rebound in growth until the fourth quarter.
Government stimuli, including 2 trillion yuan ($291 billion) in tax relief that began in March, have been slow to gain traction, analysts note. They predict Beijing will relax lending rules to ensure at least 6% full-year growth.
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