China GDP: disappointing second-quarter growth tests Beijing’s ammunition to fix uneven economic recovery
- China’s economic growth in the second quarter was below market expectations despite Beijing’s effort to boost the post-coronavirus pandemic recovery
- The jobless rate for the 16-24 age group hit a new high of 21.3 per cent in June, up from 20.8 per cent in May.
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China’s youth unemployment rate hits new high as recovery falters
Weaker than market expectations, China’s economy grew by 6.3 per cent in the second quarter – largely thanks to the coronavirus lockdown-induced low base last year, raising questions of how deep Beijing’s toolbox will be to reverse the weakening momentum for the rest of the year.
The official data released on Monday indicated continued uneven post-pandemic recovery, with faltering private confidence, record high youth unemployment and overhanging risk in the property market.
Compared to the first quarter, China’s gross domestic product (GDP) rose by only 0.8 per cent, down from a rise of 2.2 per cent in the first three months of the year.
After a sugar injection in the opening months of 2023, the pandemic hangover is plaguing China’s recovery
“This is a worrying result for an economy that’s struggling to gain momentum,” said Harry Murphy Cruise, an economist with Moody’s Analytics.
“After a sugar injection in the opening months of 2023, the pandemic hangover is plaguing China’s recovery.”
National Bureau of Statistics (NBS) spokesman Fu Linghui attempted to play up the prospects, saying that China’s economy is returning to the normal track and that its growth is still the best of the major economies this year.