China’s economic growth slows in Q2
China recorded slower-than-expected economic growth in the second quarter driven by higher raw material costs and new COVID-19 outbreaks. Policymakers are now encouraged to step up in aiding the economy’s rebound.
The country showed a strong economic recovery from the pandemic crisis caused by improved export demand and policy support, but new data highlighted some loss in momentum.
Gross domestic product (GDP) saw an expansion of 7.9% in the April-June period from a year earlier, lower than the 8.1% gain forecast by economists.
This growth was also far slower than the 18.3% expansion during the first three months of 2021.
Average growth in the second quarter of 2020 and 2021 was 5.5%, down from the first quarter’s average of 5%.
Investors now await the People’s Bank of China’s decision to shift to an easier policy stance following its announcement of cutting cash reserves.