China’s GDP contracted in the second quarter of the year

China’s Gross Domestic Product (GDP) registered a contraction of 2.6 % in the second quarter of the year compared to the previous three months, when it had grown by 1.4 %, as a result of the impact of the restrictions to contain the spread of Covid-19 and the crisis in the real estate sector, in addition to the problems of the international economy, according to data from the National Statistics Office (ONE).

This is the second worst growth figure for the world’s second largest economy, only behind the 9.8 % contraction in the first quarter of 2020. In year-on-year terms, China’s growth slowed to 0.4 % in the second quarter, compared to the expansion of 4.8 % in the first three months of 2022.

Thus, in the first half of the year, China’s GDP growth was estimated at 2.5 %, which makes it difficult to meet the 5.5 % annual expansion target set by Beijing.

“Even with a little massaging of the numbers, it’s hard to see how the government’s target of around 5.5 % growth this year can be met,” said Julia Evans-Pritchard, senior China analyst at Capital Economics.

K. Tovar

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Source: The Objective