Chinese growth falters to 0.8% in second quarter of 2023

investmentweek.co.uk:

In the three months to June, growth still overshot expectations of 0.5%, but the country has seen a reduction from the strong recovery that was expected following its reopening last year.

In the three months to June, growth still overshot expectations of 0.5%, but the country has seen a reduction from the strong recovery expected following its reopening last year.

The updated figures meant that growth for the Chinese economy sat at 6.3% over the last year, compared to expectations of 7.3%.

Youth unemployment has continued to climb in the country, now reaching above 21%, figures today (17 July) revealed.

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The trade sector was especially weak for the country throughout June, falling 6%, with exports dropping 8.3% over the last year in losses close to CNY 2tn (£210bn).

Meanwhile in June, the retail sector grew 3.1% compared to the surge of 12.7% growth in May. A Reuters poll had revealed economists expected 3.2% growth in the sector.

However, catering sales continued with strong growth, up 21.4% in the first half of the year, as restaurants continued to reopen. Renewables production also surged, with electric vehicle sales rising 35% year-on-year in the first half of 2023.

Overall, industrial production for June alone rose by 4.4% from last year, higher than the 2.7% that was forecast.

Other data released today revealed the value of newly constructed commercial residential buildings declined in almost all of the 70 largest cities in the country.

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The underwhelming growth throughout the quarter has likely increased the chances of further government intervention into the economy, following the People's Bank of China's