China’s Economic Recovery Slows Further

The Chinese economy is experiencing a continued second quarter deceleration in its recovery trajectory, prompting increasing demands for Beijing to implement further stimulus measures.

China’s economic expansion stood at a disappointing 6.3% from April through June, a figure derived from a lower base last year and considerably short of most economists' projections.

Relative to the first quarter, the gross domestic product (GDP) saw only a 0.8% increment from April to June, showing a significant downtick from the 2.2% quarterly growth recorded in the first quarter.

Recalling the previous year, severe COVID-19 lockdown measures had brought chaos to the economic landscape of the world's second largest economy, including Shanghai, a significant financial hub.

With the lifting of pandemic-related restrictions, the Chinese economy posted a robust recovery in the first quarter of the current year, boasting a 4.5% GDP growth. However, a recent batch of economic data suggests that this strong momentum is waning. Data released on Monday highlighted a deceleration in consumer spending and a decrease in business confidence, clear indications of dwindling growth.

The Chinese government's management of this slowdown has become a focal point of concern for global investors and policymakers. Given China's position as a substantial importer from numerous countries worldwide, any fluctuations in the country’sgrowth rate have a significant impact on the global economic landscape.

The Chinese yuan experienced a downturn on the release of these economic figures. The offshore rate dipped 0.3% from the prior day, while the onshore yuan fell close to 0.4%. Concurrently, the Shanghai Composite Index experienced a 0.9% decline.