China’s economy grows 6.3% in the second quarter of 2023 – 07/16/2023 – Market

China’s economy grew at a fragile pace in the second quarter, although the annual value was influenced by base effects, data released on Monday (17) showed. Overall momentum is rapidly fading due to weakened demand both domestically and abroad.

Gross domestic product (GDP) grew just 0.8% from April to June from the previous quarter, according to data released by the Office for National Statistics, compared with analysts’ expectations for a 0.5% rise. in a Reuters poll. This compares to a 2.2% expansion in the first quarter.

In the annual comparison, GDP expanded 6.3% in the second quarter, accelerating in relation to the 4.5% in the first three months of the year. However, this rate was below the 7.3% growth forecast.

The annual pace was the fastest since the second quarter of 2021, but the reading was heavily influenced by economic difficulties caused by strict Covid-19 lockdowns in Shanghai and other major cities last year.

Recent data shows a rapidly weakening post-covid recovery, with exports falling at the slowest pace in three years due to sluggish demand at home and abroad, as well as a prolonged slump in the property market, raising expectations that formulators policy makers will need to do more to strengthen the world’s second-largest economy.