Chinese growth in the second quarter of 2023 reached just 0.8%, down from a quarter-on-quarter growth rate of 2.2% in March.
In the three months to June, growth still overshot expectations of 0.5%, but the country has seen a reduction from the strong recovery expected following its reopening last year, reports Investment Week.
The updated figures meant that growth for the Chinese economy sat at 6.3% over the last year, compared to expectations of 7.3%.
Youth unemployment has continued to climb in the country, now reaching above 21%, figures today (17 July) revealed.
The trade sector was especially weak for the country throughout June, falling 6%, with exports dropping 8.3% over the last year in losses close to CNY 2tn (£210bn).
Meanwhile in June, the retail sector grew 3.1% compared to the surge of 12.7% growth in May. A Reuters poll had revealed economists expected 3.2% growth in the sector.
However, catering sales continued with strong growth, up 21.4% in the first half of the year, as restaurants continued to reopen. Renewables production also surged, with electric vehicle sales rising 35% year-on-year in the first half of 2023.
Overall, industrial production for June alone rose by 4.4% from last year, higher than the 2.7% that was forecast.
Other data released today revealed the value of newly constructed commercial residential buildings declined in almost all of the 70 largest cities in the country.
The underwhelming growth throughout the quarter has likely increased the chances of further government intervention into the economy, following the People's Bank of China's move to cut interest rates last month.
Currently, the government is targeting 5% growth throughout 2023, and today's preliminary figures showed the economy grew 5.5% in the first six months of the year.
The moderate growth numbers are likely to stoke expectations of further government efforts to stimulate the economy to ensure the 5% growth target is reached for the year.
This article was first published on sister website Investment Week.
