BEIJING (Reuters) – China's economic growth slowed to 6.2% in the second quarter from the previous year, the weakest in at least 27 years, as demand in the country and abroad faltered as states United increased commercial pressure.
FILE PHOTO: Workers are seen on a production line that manufactures tires at a factory in Nantong, Jiangsu Province, China, April 28, 2019. REUTERS / Stringer / File Photo
But stronger-than-expected gains in factory production and retail sales in June offered some signs of stabilization.
China's trading partners and financial markets are watching closely the health of the world's second largest economy as the trade war between China and the United States lengthens and becomes more expensive, fueling concerns of a recession world.
The growth data on Monday marked a new loss of momentum for the economy from 6.4% in the first quarter, amid expectations that Beijing should announce more measures to boost consumption and investment and restore business confidence.
Analysts polled by Reuters had predicted that the gross domestic product (GDP) in the April-June quarter increased 6.2%, the slowest pace since the first quarter of 1992, the first quarterly data recorded.
Beijing has relied heavily on fiscal stimulus to prop up growth this year, announcing massive tax cuts for nearly 2 trillion yuan ($ 291 billion) and a 2.15 trillion yuan quota for the issuance of special bonds by local governments with the aim of promoting the construction of infrastructure infrastructure.
However, the economy has been slow to respond, and business confidence remains cautious.
Prime Minister Li Keqiang said earlier this month that China will make timely use of the reserve requirements ratios (RRR) and other financing tools to support smaller companies, while repeating the vote not to use "similar" stimuli. the floods. "
But after the weak readings in May, data on industrial production, retail sales and investment in fixed assets on Monday exceeded analysts' forecasts, suggesting that Beijing's efforts may be starting to take effect.
Industrial production rose by 6.3% compared to the previous year, according to data from the National Bureau of Statistics, picking up from the 17-year low in May and exceeding the forecast of 5.2% growth.
The investment in fixed assets for the first half of the year increased by 5.8% compared to the previous year, compared to an increase of 5.5% forecast by analysts and 5.6% in the first five months of the year.
June retail sales increased 9.8%, eclipsing expectations of a slight decline to 8.3%. Automobile sales increased 17.2% in the month, accelerating from a 2.1% increase in May.
Even so, the economy remains in a complex situation, with external uncertainties on the rise, the statistics office said in its statement.
Faced with further downward pressure, China will make efforts to ensure stable economic growth, the bureau said.