China GDP growth slows to 6.2% in second quarter

Economy 09:36 15.07.2019

China's growth slowed to its weakest pace in almost three decades in the second quarter, with the US-China trade war and weakening global demand weighing on the world's number-two economy, reports AFP referring to official data showed Monday.

The slowing economy makes it more difficult for President Xi Jinping to fight back forcefully against Washington -- which is using tariffs as leverage to try to force Beijing into opening up its economy.

The 6.2 percent figure released by the National Bureau of Statistics was in line with a survey of analysts by AFP and down from a 6.4 percent expansion in the first quarter.

The GDP figures are within the government's target range of 6.0-6.5 percent for the whole year, down from the 6.6 percent growth China put up in 2018.

"Economic conditions are still severe both at home and abroad, global economic growth is slowing down and the external instabilities and uncertainties are increasing," said NBS spokesman Mao Shengyong.

"The economy is under new downward pressure."

Beijing has introduced measures including a massive tax cut to boost the economy, but they have not been enough to offset a domestic slowdown and softening overseas demand -- made worse by a punishing trade war with its biggest trading partner country, the United States.

Total exports rose only 0.1 percent on-year during the first six months.

Analysts widely expect Beijing will step up support in the coming months. Mao told journalists: "There is still much room for policy manoeuvering".

Monetary easing is expected to help boost the economy, and the central bank on Monday finalised a previously announced cut to the amount of cash that small and medium-sized banks hold in reserve.

With this year marking the 70th anniversary of the People's Republic of China founding, politics necessitates healthy growth, said Raymond Yeung of ANZ bank.

"The Chinese government will not allow the quarterly growth to fall below 6.0 (percent)," he said in a note.

- Bright spots -

The month of June held bright spots for the economy.

Industrial output rose 6.3 percent, from 5.0 percent in May, which was the slowest increase since 2002.

Fixed-asset investment also picked up, rising 5.8 percent on-year in January-June, from 5.6 percent in January-May.

China's 1.3 billion consumers continued to open their wallets, with retail sales growing 9.8 percent on-year in June, up from 8.6 percent in May.

"A stronger end to the quarter didn't prevent growth from slowing in (the second quarter) and we see more weakness on the horizon," said Julian Evans-Pritchard of Capital Economics in a note.

Sales of big-ticket items such as cars have not held up, with sales down 12.4 percent in the first half of the year, according to the China Association of Automobile Manufacturers.

And growth in infrastructure investment has retreated from years of near 20 percent expansion -- coming in at a 4.1 percent rise in January-June.

Imports and exports also both shrank in June, while the urban unemployment rate ticked up to 5.1 percent for the month.

Meanwhile, extreme weather and highly contagious African swine fever have sent food prices skyrocketing, especially for meat, with the size of the world's largest pig herd down 15 percent in the first half of the year.

- 'Economic realities'-

The trade war with the US has hit demand for China's goods, compounding slowing demand from the rest of the world.

"It's hard to escape the economic realities that the US-China trade war is having on global economies," said Stephen Innes, managing partner at Vanguard Markets.

Altogether the two economic giants have slapped each other with punitive tariffs covering more than $360 billion in two-way trade, damaging manufacturers on both sides of the Pacific.

It helped push China's manufacturing activity into contraction last month and its exports to the US dropped more than 8 percent over the first half of the year.

High-level trade talks to resolve the issues resumed this month, but the gulf between the two sides remains wide.

China on Friday said it would impose sanctions on US companies involved in a potential arms sale worth $2.2 billion to self-ruled Taiwan.

Read more:

 

Azerbaijan Defense Minister informs NATO chief on situation in Azerbaijan-Armenia conditional border -VIDEO

News line

Turkish intelligence neutralizes one of PKK leaders
Turkish intelligence neutralizes one of PKK leaders
13:45 19.03.2024
Moldova’s Foreign Ministry to expel Russian Embassy employee
Moldova’s Foreign Ministry to expel Russian Embassy employee
13:30 19.03.2024
Azerbaijan weather forecast for March 20
13:13 19.03.2024
Israel, Hamas ready to compromise at Doha talks
13:05 19.03.2024
More than dozen workers trapped in one of Russia's largest gold mines
More than dozen workers trapped in one of Russia's largest gold mines
12:49 19.03.2024
Armenia may face a war if refuses to discuss border issues - Pashinyan
12:22 19.03.2024
North Korea holds firing drill using super-large multiple rocket launchers
North Korea holds firing drill using super-large multiple rocket launchers
11:55 19.03.2024
Fenerbahçe to discuss withdrawing from 'Super Lig'
11:32 19.03.2024
Azerbaijani police found numerous weapons and ammunition in Khankandi
11:08 19.03.2024
US Maritime Administration issues new advisory amid rising maritime threats in Middle East
10:55 19.03.2024
EU looks forward to cooperation with Azerbaijan for successful COP29
10:38 19.03.2024
EU to impose tariffs on Russian grain
10:11 19.03.2024
Embassy of Azerbaijan in France appeals to Azerbaijanis
10:00 19.03.2024
Azerbaijani oil price exceeds $88
Azerbaijani oil price exceeds $88
09:48 19.03.2024
Mehriban Aliyeva makes post on Last Tuesday before Novruz Holiday
09:35 19.03.2024
Pashinyan: Delimitation process between Armenia and Azerbaijan entered practical stage
09:00 19.03.2024
Pakistan restricts foreign travels of ministers, government officials
Pakistan restricts foreign travels of ministers, government officials
20:39 18.03.2024
EU to boost military support fund for Ukraine by EUR 5 bln — Hungarian foreign minister
20:00 18.03.2024
Industrial zones to be created in Azerbaijan’s Zangilan, Jabrayil, and Gubadli
19:16 18.03.2024
Reuters: Only an oil slump can stop Russia
19:00 18.03.2024
Top Hamas operative killed in hospital raid, IDF says
Top Hamas operative killed in hospital raid, IDF says
18:33 18.03.2024
President Ilham Aliyev congratulates people of Azerbaijan on occasion of Novruz holiday - UPDATED
18:00 18.03.2024
Jens Stoltenberg: We fully support Georgia's sovereignty and territorial integrity
Jens Stoltenberg: We fully support Georgia's sovereignty and territorial integrity
17:47 18.03.2024
2 dead, 6 injured in Türkiye factory explosion
2 dead, 6 injured in Türkiye factory explosion
17:28 18.03.2024
Armenia’s anti-Russian policy reaches new level
17:11 18.03.2024
"The Middle Corridor plays a key role for Green Energy" - Expert Ali Pasha
16:45 18.03.2024
Central square of Khankandi named “Victory Square”
16:22 18.03.2024
President: We demonstrated tremendous heroism during the II Karabakh War and the anti-terror operation
16:16 18.03.2024
Nobel Peace Prize Laureate Muhammad Yunus visited IEPF - PHOTOS - VIDEO
16:00 18.03.2024
Historic opportunity emerged to advance the Azerbaijani-Armenian peace agenda - FM Bayramov
15:21 18.03.2024
Bayramov and Stoltenberg discuss normalization process between Azerbaijan and Armenia
15:03 18.03.2024
Azerbaijan Defense Minister informs NATO chief on situation in Azerbaijan-Armenia conditional border -VIDEO
14:58 18.03.2024
Stoltenberg's visit to the Caucasus: "NATO is in panic" - OPİNİON
14:29 18.03.2024
Hikmat Hajiyev holds discussions for upcoming COP29 with Chinese Vice FM
Hikmat Hajiyev holds discussions for upcoming COP29 with Chinese Vice FM
14:00 18.03.2024
Stoltenberg concludes his official visit to Azerbaijan
13:42 18.03.2024
Geomagnetic storm expected on March 20
13:33 18.03.2024
Mbappe celebrates his 250th goal in PSG
Mbappe celebrates his 250th goal in PSG
13:19 18.03.2024
President Ilham Aliyev makes a phone call to Vladimir Putin
13:00 18.03.2024
President Ilham Aliyev lit Novruz bonfire in Khankandi and congratulated Azerbaijani people
12:34 18.03.2024
Foreign students attacked in India over Ramadan prayers
12:30 18.03.2024
Hamısı