TAIPEI, Taiwan – China's economy grew just 0.8% in the second quarter of this year, compared to the three months prior.
The disappointing numbers come amid dropping property sales, weak exports and a stagnant retail environment. While the figures beat more pessimistic predictions from economists, the anemic figures are not enough to give China the post-COVID economic recovery it was hoping for.
"The second quarter GDP performance reflects the lingering effects of the pandemic on China's economy; a return to the pre covid growth trend will therefore take longer than expected," Yue Su, an economist with the research group Economist Intelligence Unit, wrote in a note. Economists say China needs to boost consumer spending and retail sales domestically, but those have plateaued as Chinese consumers prefer to save rather than spend.
Complicating things are high interest rates in the U.S. and Europe as the West combats inflation – causing customers there are now buying less from China. That contributed to an 8.3% drop in Chinese exports, year on year, last month.
Youth unemployment has been at historic highs at above 20% for months now, a rate comparable to that of Italy.
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