China’s economic growth slowed to the weakest pace in at least 27 years as demand at home and abroad cooled in the face of a bruising trade war with the United States, data showed on Monday.
The world’s second largest economy grew 6.2 percent in the second quarter from a year earlier, after expanding 6.4 percent in the first three months of 2019, Reuters reports, citing figures released by China’s National Bureau of Statistics.
The gross domestic product (GDP) figure, which was in line with the forecasts of analysts polled by Reuters, marks the slowest pace since the first quarter of 1992, the earliest quarterly data on record.
Other economic indicators, however, surpassed market expectations.
Industrial output grew 6.3 percent in June from a year earlier, picking up from May’s 17-year low and handily beating market expectations.
Analysts polled by Reuters had tipped a 5.2 percent rise, compared with 5.0 percent growth seen in May.
Fixed-asset investments for the first half of the year rose 5.8 percent from a year earlier, compared with a 5.5 percent rise forecast by analysts.
Private sector investment in fixed assets, which make up 60 percent of the country’s total investments, rose 5.7 percent in January-June, compared with a 5.3 percent rise in January-May.
Retail sales for June rose 9.8 percent in annual terms. Analysts had expected growth to cool to 8.3 percent in the month from the 8.6 percent pace recorded in May.
Financial markets are closely watching the health of the Chinese economy as the year-long Sino-US trade war takes a heavier toll on businesses and investment, fuelling worries of a global recession.
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