China’s economy shows further signs of weakness, fails growth expectations

BEIJING—China’s economy showed further signs of weakness in the second quarter as data Monday revealed growth missed expectations and consumers remained cautious, adding pressure on leaders to unveil further stimulus.

The disappointing figures follow a string of below-par readings in recent months indicating the post-Covid recovery was already going off the rails and highlighting the tough work authorities face reviving momentum.

The National Statistics Bureau said the world’s number two economy grew 6.3 percent on-year in April-June, faster than the previous three months but much weaker than the 7.1 percent predicted in an AFP survey of analysts.

That came despite having a very low base of comparison with last year when the country was hit by a series of Covid lockdowns in major cities.

In quarter-on-quarter terms—considered a more realistic basis for comparison— growth came in at 0.8 percent, well down from the 2.2 percent seen in JanuaryMarch, the first full period after the removal of zero-Covid restrictions.

NBS spokesman Fu Linghui said in a statement that the economy “showed a good momentum of recovery”.

“Market demand gradually recovered, production supply continued to increase, employment and price were generally stable, and residents income grew steadily,” he added.

But Fu admitted at a Monday news conference the Chinese economy faces “a complex and difficult international situation, and arduous tasks for reform, development and ensuring stability”.

Additional data reinforced the view that the post-pandemic recovery was petering out.

Retail sales, a key gauge of consumption, edged up 3.1 percent in June from a year earlier, according to the NBS, slowing from the 12.7 percent rise in May. AFP