ALBAWABA – China’s gross domestic product (GDP) grew less than expected in the second quarter (Q2) of the year 2023 as official data, released Monday, showed China GDP growth rate had reached 6.3 percent year-on-year.
Meanwhile, youth unemployment in China rose to new record highs in June, at 21.3 percent, according to a statement issued by the National Bureau of Statistic. Whereas urban unemployment remained at 5.2 percent.
Youth unemployment in May stood at 20.8 percent, Agence France-Presse (AFP) reported.
Analysts polled by AFP expected China GDP to hit a 7.1 percent growth rate for the quarter. Though they had warned that forecasts may be misleadingly inflated, in light of the low base of comparison with the year 2022, in light of the pandemic.
By quarter, China GDP grew by 4.5 percent year-on-year in the first quarter and 6.3 percent in the second quarter, NBS spokesman Fu Linghui said, as reported by AFP.
But as AFP analysts prefer a more realistic quarter-on-quarter comparison, the figures released by the bureau indicate a 0.8 percent growth rate in the April-June period.
Notably, China’s economy grew at a higher rate, quarter-on-quarter, in the first quarter of 2023, compared to the last quarter of 2022, at a rate of 2.2 percent.
Spokesman Fu said the economy "showed a good momentum of recovery".
"Market demand gradually recovered, production supply continued to increase, employment and price were generally stable, and residents income grew steadily," he added.
But Fu admitted at a Monday news conference the Chinese economy faces "a complex and difficult international situation, and arduous tasks for reform, development and ensuring stability".
A key gauge of consumption, Retail sales, rose 3.1 percent in June from a year earlier, according to the NBS, but it is less than May’s 12.7 percent.
These results are in line with expectations of analysts polled by Bloomberg, but signal shaky consumer confidence.
Another indicator is exports, which have been declining in China, previous data confirmed.
Last year, China GDP expanded 3.0 percent, well below the official target of 5.5 percent, according to AFP.
This year, China is aiming for about 5 percent growth, one of the lowest targets set by China in decades and one that Premier Li Qiang has warned will not be easy to achieve.
