Lebanese Ministry of Information
Growth falls to 6.2 per cent in second quarter – the lowest on record – hit by sharp rise in US tariffs on Chinese goods in May
China’s economy has slowed to its lowest growth rate in almost three decades, suggesting the trade war with Donald Trump is taking its toll.
The world’s second-largest economy expanded by 6.2 per cent in the second quarter compared with a year ago – the weakest reading since early 1992 when quarterly records began.
“China’s growth could slow to 6-6.1 per cent in the second half,” said Nie Wen, an economist at Hwabao Trust, predicting the economy would continue to slow before stabilising around the middle of next year.
However, in June, both exports and imports fell.
“Due to the global slowdown and impact from the trade war, our exports will continue to fall and it’s possible they may post zero growth for the year,” said Zhu Baoliang, chief economist at the State Information Centre, a top government think tank.
And Beijing’s earlier growth-boosting efforts may be starting to have an effect.
Industrial output climbed 6.3 per cent in June from a year earlier, data from the National Bureau of Statistics showed, picking up from May’s 17-year low. Daily output for crude steel and aluminium both rose to record levels.
Some analysts, however, questioned the apparent recovery in both output and sales.
Capital Economics said its calculations suggested slower industrial growth last month, while the jump in car sales might have been partly due to a one-off factor.
Car dealers in China are offering big discounts to customers to reduce high inventories that have built up due to changing emission standards. Car manufacturing actually fell for the 11th consecutive month in June, suggesting car makers don’t expect a sustained bounce in demand anytime soon.
Reuters
