China Economy Grows at Slowest Pace Since 1990’s in Q2 2019
According to official figures, the Chinese economy grew at its slowest pace since the early 1990s in Q2 of 2019.
In this year’s second quarter, China’s economy grew 6.2% from a year earlier. The result was in line with forecasts.
The country has moved to stimulate its economy this year by boosting spending and delivering tax cuts.
China is also fighting a trade war with the US which has hurt businesses and weighed on growth.
The data released on July 15 showed China’s economic growth rate slowed from 6.4% in Q1 of 2019 to 6.2% in Q2 of the same year.
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According to the national statistics bureau, the figures pointed to a “complex environment” both at home and abroad.
It said the country’s economy had “performed within the reasonable range” in the first half of 2019 but that it faced “new downward pressure”.
While China watchers advise caution with Beijing’s official gross domestic product numbers, the data is seen as a useful indicator of the country’s growth trajectory.
Other data showed some signs of improvement in the world’s second largest economy.
Industrial production rose 6.3% in June from a year earlier, while retail sales rose 9.8% year-on-year – both above forecasts in Reuters polls.
Slowing growth in China has raised concerns about the potential knock-on effect on the global economy.
Earlier this year China announced plans to boost spending and cut billions of dollars in taxes in an effort to support the economy.
It has also moved to provide a liquidity boost by reducing the amount of cash banks must hold in reserve.
The US-led trade war is another factor weighing on growth.
While the US and China agreed to resume trade talks at a recent G20 summit in Japan, they have already placed tariffs on billions of dollars worth of one another’s goods, hurting businesses and casting a shadow over the world economy.