China's economy grew 6.3% in Q2, lower than expected as momentum slows

China's economy grew 6.3 per cent in the second quarter of the year after near-stagnant growth a year earlier, missing analyst expectations even as momentum is expected to weaken in the coming quarters.

The 6.3 per cent growth in China's gross domestic product from April to June compared to the same period in 2022 was the fastest in the past year, and outpaced the 4.5 per cent growth in the previous quarter, according to government data released Monday.

The GDP in the second quarter was up 0.8 per cent compared to the first three months of the year.
 

The surge in growth is largely due to China's GDP growing just 0.4 per cent a year ago, amid strict lockdowns in cities like Shanghai during China's worst Covid-19 outbreak of the pandemic.

Analysts had forecasted growth for the quarter ended June to exceed 7 per cent.

China's GDP in the first quarter beat expectations and grew by 4.5 per cent, as consumers flocked to shopping malls and restaurants after nearly three years of zero-Covid restrictions were removed at the end of 2022.

But analysts expect the growth to slow, amid a 12.4 per cent slump in exports in the second quarter.







 

China rolls over medium-term loans, keeps rate unchanged

China’s central bank rolled over maturing medium-term policy loans and kept the interest rate unchanged on Monday, however markets expect authorities will need to unleash more stimulus to support slowing economic growth. The economic recovery has lost momentum after an initial burst in the first quarter, prompting monetary authorities to lower key policy rates last month. The People’s Bank of China (PBOC) said it was keeping the rate on 103 billion yuan ($14.43 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions unchanged at 2.65 per cent. 

(Reuters)