China reported Monday that its second-quarter GDP increased by 6.3% year on year, falling short of estimates.
The second-quarter GDP figure of 6.3% was a 0.8% increase over the first quarter, lower than the 2.2% quarters-on-quarter pace achieved in the initial three months of the year. Reuters polled analysts, who anticipated a 7.3% growth in second-quarter GDP.
China has a difficult geopolitical and economic international environment, according to National Bureau of Statistics spokeswoman Fu Linghui.
He also stated that China can still meet its full-year growth target. Beijing announced a 5% growth target for 2023 in March.
Retail sales increased by 3.1% in June, slightly less than the 3.2% projected. Catering, entertainment and sports products, as well as alcohol and cigarettes, saw the greatest increase in retail sales.
In June, sales of automobiles, office supplies, and consumer items fell from the previous year. According to CNBC calculations based on government statistics available through Wind Information, online sales of tangible goods increased by 6.7% year on year in June, slower than in May.
In June, the city unemployment rate was 5.2%.
When questioned about the prospects for the second half, spokeswoman Fu stated that real estate investment will likely stay low for the foreseeable future.
He also predicted that young unemployment will grow further before falling in August.
Exports Drop Due to Global Demand Drop
China lifted Covid-19 limits in December, but the economic recovery stalled. The real estate sector faltered, while exports fell due to a reduction in worldwide demand.
In June, prices were steady due to weak consumer demand. Inflation is expected to fall in July, but to rise later this year, according to the People’s Bank of China.
Domestic travel shines throughout the healing period. In the first half, urban inhabitants spent twice as much on tourism as rural residents, totaling 1.98 trillion yuan ($280 billion).
Official figures revealed that the first-half total of 2.3 trillion yuan fell short of pre-pandemic levels (2.78 trillion yuan in the first six months of 2019).
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Source: CBNCChina’s Second-Quarter GDP Misses Expectations, Youth Unemployment Hits All-Time High