Explainer | From GDP to youth unemployment, 6 takeaways from China’s economic data in June
- China’s economic growth missed expectations and grew by 6.3 per cent in the second quarter, year on year, up from the 4.5 per cent growth in the first quarter
- Monthly data also released on Monday indicated faltering private confidence, record high youth unemployment and overhanging risk in property market
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China’s youth unemployment rate hits new high as recovery falters
1. GDP growth a worrying result?
But quarter on quarter, China’s gross domestic product (GDP) rose by only 0.8 per cent, slowing from a rise of 2.2 per cent in the first quarter.
In the first half of the year, China’s GDP grew by 5.5 per cent compared to the same period last year, higher than Beijing’s full-year growth target for 2023.
“China’s second quarter GDP growth surprised on the downside. Obviously, we might have to embrace a new wave of growth outlook downgrade in the next couple of days. However, the 5 per cent growth target looks very attainable,” said Zhou Hao, chief economist at Guotai Junan International.
Harry Murphy Cruise, an economist at Moody’s Analytics, said the quarter-on-quarter growth rate was a “worrying result for an economy that’s struggling to gain momentum”.
“China’s recovery is going from bad to worse. The 6.3 per cent year on year expansion through the June quarter was below expectations and flattered by the lockdown-ravaged reference period last year,” he added.
“After a sugar injection in the opening months of 2023, the pandemic hangover is plaguing China’s recovery.”
