Problems with Corona aftermath
Chinese economic growth falls short of expectations
7/17/2023 7:19 am
It’s not as rosy as expected: According to economists, the Chinese economy is expected to grow by 7.3 percent in the second quarter – but in the end it will only be 6.3 percent. The reason is a combination of several obstacles.
China’s economic growth was slower than expected in the second quarter due to slowing domestic and overseas demand. Year-on-year, gross domestic product (GDP) grew 6.3 percent from April to June, falling short of the 7.3 percent growth forecast, data from the Beijing Bureau of Statistics showed. Compared to the previous quarter, GDP grew by 0.8 percent, after plus 2.2 percent in the first three months. Economists surveyed by the Reuters news agency had expected an increase of 0.5 percent.
While the rise was the fastest since the second quarter of 2021, the results were skewed by the economic woes caused by last year’s tight lockdowns in Shanghai and other major cities. “China’s second-quarter GDP growth surprised to the downside, coming in at 6.3 percent. Obviously, we need to brace for a new wave of growth outlook downgrades in the coming days,” said Zhou Hao, economist at Guotai Junan International.
However, the five percent growth target of the world’s second-biggest economy after the USA appears to be quite achievable. The latest data shows that the post-pandemic recovery of the economy is faltering as exports fell by the most in three years amid slowing demand at home and abroad. In addition, the ongoing downturn in the troubled real estate market is shaking confidence.