China’s economy continued to rebound in the second quarter of the year, albeit at a slower rate than the three months prior. Economists expect a downtrend in the coming months.
- China’s economy grew by 7.9% in the second quarter, meeting economists’ expectations. This is slower than the 18.3% in the first quarter.
- Both retail sales and fixed-asset investments posted double-digit growth in the quarter, beating market forecasts.
- Factory output gained 8.9% in the second quarter and 8.3% in June, while the unemployment rate was broadly unchanged at 5.0%.
- The latest data is likely to quell concerns of government intervention to continue growth in the remaining months of 2021.
- Year-to-date growth stood at 12.7%, above the full-year growth target of at least 6% earlier announced by China’s Premier Li Keqiang.
- Analysts expect 8% due to the low base in 2020 amid the COVID-19 lockdowns.
- The country earlier said it would be comfortable with more modest growth in 2021 as it continues efforts to address economic imbalances, rising debt, and its aging population.