KURE - China's economy grew a lower than expected 6.3% in the second quarter

2023-07-17 00:53:22 ET

• China's economy expanded by 6.3% in the second quarter from a year earlier, faster than the 4.5% growth in Q1 but missing market estimates of 7.3%.

• China posted 0.4% growth in the second quarter of last year as COVID-19 lockdowns restricted business activities.

• The latest figures were affected by a low base of comparison last year, when Shanghai and other big cities were in strict lockdown.

• The economy expanded by 5.5% in the first half of the year thanks to activity in the service sector, which includes travel and lodging as well as information services. The retail sector expanded 8.2%, compared to 0.7% for the same period last year, thanks largely to income from catering.

• In June alone, indicators showed a mixed picture: retail sales rose much softer, industrial output growth increased for the 14th month, and the urban jobless rate was unchanged at 5.2%, but youth unemployment hit a new high of 21.3%.

• National Bureau of Statistics spokesperson Fu Linghui noted that China faces a complex geopolitical and economic international environment. He also said China can still achieve its full-year growth target. Beijing set a goal of around 5% growth for 2023 in March.

• The outlook is modest after the economy expanded by 3% in 2022, one of the weakest annual performances in decades, and missed the government's target of about 5.5%.

• But Beijing has otherwise shown reluctance to embark on greater stimulus, especially as local government debt has soared. A Politburo meeting expected later this month could provide more details on economic policy.

• ETFs: ( FXI ), ( KWEB ), ( CQQQ ), ( MCHI ), ( ASHR ), ( YINN ), ( TDF ), ( CHIQ ), ( GXC ), ( EWH ), ( KBA ), ( YANG ), ( CXSE ), ( CAF ), ( CWEB ), ( PGJ ), ( KURE ), ( CHIX ), ( CYB ).

For further details see: