Beijing: China’s economy grows slower than expected in the second quarter, official data shows on Thursday, because higher raw material costs damage factory activity and new covid-19 outbreaks limit consumer spending.
Gross domestic product (GDP) was expanded 7.9% in the April-June quarter from the previous year, compared with expectations for an 8.1% increase in the polls of the Reuters economist.
Growth slowed significantly from a record expansion of 18.3% in the January-March period, when the year-to-year growth rate was very inclined by a covid induced decline in the first quarter of 2020.
While the second largest economy in the world has rebounded very from the Covid crisis -19, the release of data in recent months has pointed out some of the loss of momentum.
Investors watched to see whether the central bank shifted to a policy position that was easier after it was announced last week it would cut the amount of cash that the bank should be held as a reserve.
On a quarterly, GDP extended 1.3% in the April-June period, the National Statistics Bureau said, defeated expectations for a 1.2% increase in Reuters polls.
The economy fostered 0.4% revisions in the first quarter of the fourth quarter of last year.