China has posted its slowest economic growth in nearly four years.
The Asian nation of 1.4 billion people has reported that its economy in this year’s second quarter expanded at its weakest pace since the fourth quarter of 2022.
China’s gross domestic product (GDP) growth came in at 4.3% in the April through June period, missing economists’ forecast for 4.5% growth and slowing from 5% in the year’s first quarter.
That second-quarter growth came in below Beijing’s full-year target range of 4.5% to 5%, the country’s weakest economic target in decades.
China’s slowing economy is being blamed on trade tensions with the U.S. and sluggish domestic demand.
Economists say they expect China to ramp-up its stimulus measures in the current third quarter, including an interest rate cut to stimulate investment demand.
Investments in real estate, infrastructure and manufacturing plunged 18%, 2.4% and 1.2% in the second quarter, according to official government data.
Retail sales in May posted their first monthly decline since late 2022, dragged down by weak demand and discounting among merchants.
In a bright spot, China’s industrial output expanded 5.3% in June from a year ago, stronger than the forecast of 4.7% growth and building on a 4.5% expansion in May.
Also, China’s export growth continues to beat expectations, posting its strongest rise since late 2021, powered by demand for microchips, computers and parts, as well as energy equipment.
China’s economy has struggled since the end of the Covid-19 pandemic as domestic demand has remained weak and there has been a downturn in the country’s property sector.
Related Stories
