The mainland's economic growth dipped below 8 per cent in the second quarter, the weakest quarterly performance in three years, adding more pressure on the government to stimulate demand.
Gross domestic product (GDP) expanded 7.6 per cent from a year ago in the April to June period, the National Bureau of Statistics said yesterday. The data came in weaker than the 7.7 per cent expected and marked a slowdown from the 8.1 per cent growth in the first quarter of this year.
However, many economists still forecast the world's second-largest economy will bottom out soon, as more loosening measures to facilitate investment kick in.
Reaction on regional stock markets was muted, with most rising modestly yesterday. The Shanghai Composite Index edged up 0.02 per cent and the Hang Seng Index climbed 0.35 per cent.
The economy has bottomed and 'should rebound strongly in the second half on stimulus policies', said Daiwa Securities economist Sun Chi. 'We maintain our 8.3 per cent GDP growth forecast for the full year.'
Sheng Laiyun, spokesman of the statistics bureau, said the economy was stable and noted that the 7.8 per cent GDP growth for the first half was still higher than the 7.5 per cent government target for the full year.
The second-quarter slowdown was the result of the 'worsening international situation', which hampered external demand and the 'weakening domestic demand' caused by curbs on the property market, Sheng said.