China’s slowing economy still shows growth that any country would envy
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Beijing has released second quarter data showing the country’s economy grew 6.2 percent from a year ago, the worst result in nearly three decades that also comes amid China’s simmering trade war with the US.
China’s gross domestic product (GDP) growth declined for the second quarter in a row, down 0.2 percent from 6.4 percent it posted in the previous quarter, the National Bureau of Statistics (NBS) announced on Monday. It said that over the first half of the year, China’s economy grew by 6.3 percent.
#China’s Q2 GDP grew 6.2% y-o-y, the slowest pace in about 27 years. H1 GDP grew 6.3% to 45 trillion yuan ($6.54 trillion), meeting the annual growth target between 6 and 6.5%. pic.twitter.com/Rs0dFzxOLC
— Global Times (@globaltimesnews) July 15, 2019
Despite the slowdown, the growth of the world’s second largest economy still falls within Beijing’s GDP target for this year, set between 6 and 6.5 percent.
The country’s economy is still under pressure from home and abroad, according to China’s statistics bureau spokesperson Mao Shengyong. He added that, despite some existing external uncertainties and a complex situation, China maintains steady economic growth.
“The economic data is still facing downturn pressure [in the second half of the year]. While there are also many positive factors, the market vitality is gradually being stimulated,” he told reporters.
Following the GDP figures release, Chinese stocks initially slipped, but managed to recover and post gains as trading closed on Monday. The Shanghai composite index rose 0.4 percent, while the Shenzhen component added more than 1 percent.
The trade tensions between the world’s two largest economies, China and the US, could have taken its toll on China’s economy. While Washington and Beijing have postponed any additional tariffs, the two are still far from reaching a major trade deal.
Analysts believe that China is set to roll out additional measures to stabilize the economy, including reserve requirement ratio and interest cuts, according to Global Times. Speaking to the outlet, an economist at the Bank of Communications, Liu Xuezhi, described the latest GDP figures as “relatively high” compared with many other economies, adding that the slowdown is “very mild, not a cliff fall.”
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