The second world power increased its GDP by 0.4% in the second quarter, mainly due to incarcerations caused by the pandemic
The coronavirus halted China’s growth in the second quarter of the year, a period in which the economy grew by just 0.4% year-on-year. It is the worst figure since the start of the pandemic and the second lowest since the world’s second-largest economy decided to abandon Maoism in the 1980s. It also means that barring unexpected surprises in the second half of 2022 , Chinese leaders were unable to achieve the 5.5% growth rate set as a full-year target as GDP grew by 2.8% between April and June, after a 4.8% increase between January and March. 6% fell.
The main reason for this delay can be found in the harsh confinement of cities such as Shanghai or Changchun. Not in vain, China’s economic capital saw its blow cut 13.7% of its wealth. While restrictions have already been eased and there is no fear of a technical recession, analysts point out that the scenario for the second half of the year is not particularly promising as two types of uncertainty remain: local, caused by fears of the Chinese population. to the imposition of municipal detentions, which is reflected in the 28.2% decrease in income from the tourism sector; and the global, derived from runaway inflation and the fear caused by the war in Ukraine, which is fueling fears of recession in various parts of the world.
However, there are some green shoots in China’s economic outlook. The most important is the slight rebound in consumption in June -retail sales rose by 3.1%- after shackling for two months of contraction. While the balance for the semester as a whole remains slightly negative – down 0.7% – Chinese leaders hope the various stimulus packages approved will continue the upward trend, also supported by a drop in the unemployment rate from 6.1 % increased. at a rate of 5.5%. However, the negative data in this regard is the unemployment of urban youth, which has risen to an all-time high of 19.3%.
Positive aspects of the statistics released today by the Chinese government include fixed asset investment, which grew by 6.1%, and industrial production, which grew by 3.9%. These are data contributing to the record trade surplus driven by export growth, although National Statistical Bureau spokesman Fu Linghui has pointed out that “the risk of global stagflation” is something that would weigh on consumption internationally.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
