China Q2 GDP: China’s economy grows 7.9% in second quarter

The Chinese economy has shown some complex signs in recent months. The prices of registered goods increased Industrial inflation To very high levels for more than a decade, due to supply chain disruptions Shipping backlinks And a Lack of energy The factory halted production.

As the world’s second-largest economy loses recovery steam, China is surpassing its annual growth target of more than 6% this year.

Thursday’s data showed retail sales were up 12% in June, while industrial production was up 8.3%.

Concerns for weak growth have grown over the past week, after the Chinese People’s Bank reduced the size of its financial institutions to keep reserves. The move to reduce the reserve demand ratio by 50 basis points took viewers by surprise, a sign that the economic recovery could stumble.

The first cut to that rate from April 2020 is aimed at encouraging banks to lend more, as the central bank says small businesses are facing difficulties as commodity prices rise.

Nevertheless, China released some good news about trade earlier this week. According to customs data, exports rose by more than 30% in June compared to the same period in 2019.

According to Ding Lu, Nomura’s chief economist at China, strong export data has helped ease market concerns about the “immediate recession.”

But Lu said it could be “short-lived” because it issued a call for the destruction of backlogs in some major South Chinese ports.

Prior to Thursday, China’s GDP was forecast to grow by 8.1% in the second quarter, falling to 6.4% and 5.3%, respectively.