China’s post-pandemic economic rebound slows
The recovery of China’s economy from the coronavirus pandemic has slowed down, official figures have shown.
Gross domestic product increased by 7.9 per cent in the second quarter of 2021. Compared to last year, this was less than half the rate seen in the previous quarter. It also missed economists’ forecasts of 8.1 per cent growth.
Official figures for June also showed better-than-expected growth for retail sales and industrial production.
Uncertainties
China’s National Bureau of Statistics said: “China’s economy sustained a steady recovery with the production and demand picking up.”
Though it warned that “the epidemic continues to mutate globally and external instabilities and uncertainties abound.”
There have been concerns about the recovery of the world’s second economy in recent months.
Prices for commodities such as iron, ore and copper are at a record high, and have pushed factory inflation to the highest level in more than a decade.
The country has also seen supply chain disruptions as shipping firms have been hit with backlogs and energy shortages have hindered factory output.
Despite China experiencing their biggest jump in GDP since 1992 at 18.3 per cent, it was still below expectations. A Reuters poll of economists predicted growth of 19 per cent.
They were also less indicative of strong growth. Compared to last year’s economic contraction, China’s economy shrank 6.8 per cent due to nationwide lockdowns as a result of the Covid pandemic.