China's Q2 growth hits slowest pace in over three years | News. az
China's economy grew at its slowest pace in more than three years during the second quarter, as weak household consumption continued to overshadow robust manufacturing and export performance, raising fresh. . .
China's economy grew at its slowest pace in more than three years during the second quarter, as weak household consumption continued to overshadow robust manufacturing and export performance, raising fresh concerns about the long-term sustainability of the country's uneven growth model. Gross domestic product (GDP) expanded by 4. 3% in the April-June period, down from 5. 0% in the first quarter. The figure fell below the lower end of China's full-year growth target of 4. 5%-5. 0% and missed market forecasts,News. Azreports, citingReuters. Focus is now shifting to the Chinese Communist Party Politburo's closely watched meeting later this month, where senior leaders are expected to review economic conditions and consider policy adjustments aimed at keeping growth on track. RECOMMENDED STORIESChina's BYD, Chery drive Indonesia's EV sales growthTyphoon Bavi forces evacuation of over 260,000 in northeast ChinaMore than 260,000 evacuated as Typhoon Bavi brings severe floodsPentagon backs rare earth startup with $25 millionEconomic data released on Wednesday showed retail sales rising by just 1. 0% in June, while industrial output increased by 5. 3%, highlighting China's continued dependence on global demand for manufactured goods. The figures come as several trading partners voice concerns over China's economic imbalances and as the ongoing conflict involvingIranweighs on the global economy. At home, wage growth has failed to keep pace with the broader economy and has even declined in some sectors. Industrial overcapacity, U. S. tariffs and intense price competition among manufacturers have contributed to factory layoffs, while subdued domestic demand and the rapid adoption of artificial intelligence have slowed job creation in white-collar industries. The prolonged downturn in the property sector has further weakened household wealth and reduced employment in construction since 2021. Official data showed property investment fell 18% year-on-year in the first six months of the year, while home prices also continued to decline. At the same time, tens of millions of workers have moved out of formal employment into the gig economy, taking jobs with ride-hailing and food delivery platforms that are often characterized by long working hours, low wages and limited social security protection. Investment growth is also losing momentum. Local governments, which have long been a major source of investment in manufacturing and infrastructure and are frequently criticized for contributing to excess industrial capacity and inefficient allocation of resources, are now facing increasing pressure to reduce spending and cut costs. News. AzBy Nijat Babayev