Economic growth of China slows beyond expected in second quarter of 2024

(MENAFN) China's economic growth decelerated beyond analysts' forecasts in the second quarter of 2024, marking its slowest pace since the first quarter of 2023. Data from China's National Bureau of Statistics revealed that the world's second-largest economy expanded by 4.7 percent year-on-year in Q2, falling short of expectations which had projected a growth rate of 5.1 percent. This comes after a 5.3 percent growth registered in the first quarter of the year.

The economic indicators further highlighted mixed performance across different sectors. Chinese retail sales for June grew by 2 percent, undershooting expectations of a 3.3 percent increase. In contrast, industrial production exceeded forecasts, rising by 5.3 percent year-on-year in June, surpassing analysist’s estimated growth rate of 5 percent.

Despite the slower-than-expected economic growth, China's total imports and exports of goods denominated in yuan increased by 6.1 percent year-on-year in the first half of the year, as reported by a news agency citing official Chinese data. Dollar-denominated exports rose by 8.6 percent year-on-year in June, following a 7.6 percent increase in May. This contributed to China's trade surplus expanding to USD99.05 billion in June, up from USD82.62 billion in May, surpassing expectations for a rise to USD85 billion.

The economic data underscores ongoing challenges and nuances within China's economic landscape, influenced by global trade dynamics, domestic consumption patterns, and industrial production trends. Analysts continue to monitor these developments closely amidst implications for global economic growth and market sentiment.  

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