China’s GDP growth slowed to 0.8 percent in the second quarter of this year

China’s gross domestic product (GDP) registered a Growth of 0.8% in the second quarter compared to the first three months of 2023, when it rose by 2.2%, driven by the lifting of restrictions to combat covid, according to data released this Monday State Statistics Office (ONE)reports Europa Press.

However, in year-on-year comparisonbetween April and June the Chinese economy increased by 6.3% compared with the second quarter of 2022, when activity was limited by restrictions, after a 4.5% year-on-year expansion between January and March.

Thus, in the first half of the year, China’s GDP grew by 5.5% compared to the same period in 2022, including growth of 3.7% in the primary sector and 4.3% in industryMeanwhile he the service sector grew by 6.4 percent.

“In the first half of the year, we faced a complex and serious international environment, as well as the difficult tasks of promoting reforms, development and ensuring stability in the country,” the Chinese statistics office said in a statement, noting that the national economy “showed a good momentum of recovery.”

Goodbye to the reopening effect

After the publication of GDP data for the second quarter, the economist for China from Capital economy, Sheana Yue, warned that it is GDP growth “slowed down faster than expected” in the second quarter due to the weakening momentum of reopening.

In general, for analysts, the published data suggests that reopening recovery slowed down in the second quarter, while high-frequency data signals indicate a constant weakness during the first half of July.

“Given the gloomy backdrop, it is not surprising that policymakers are becoming increasingly concerned and have made some efforts to support the economy. But the measures so far have not met what is needed for a significant boost to the economy.”

So Capital Economics reduced its annual growth forecast for China from 6% to 5.5%in line with analyst consensus, given signs that output for the rest of the year looks set to be weaker than previously expected.

Record youth unemployment

Also, the Chinese Bureau of Statistics reported that in June the unemployment rate among 16-24 year olds was 21.3%, compared to 20.8% last month, the worst reading in the entire historical series. On the other hand, at the general level, the unemployment rate in urban areas remained stable at 5.2%, which confirms the difference between rising youth unemployment, while unemployment for those between 25 and 59 was 4.1%.