China’s GDP grew by 6.3% in second quarter, but youth unemployment hits record high
Politics & Current Affairs
China has released official economic statistics for the first half of 2023. The numbers are not too bad, but they don’t seem to have reassured the markets about the country’s post-pandemic recovery.
- Bloomberg said, “China’s economic recovery lost momentum in the second quarter, putting Beijing’s growth target for the year at risk and adding to concerns about a slowdown in the world economy.”
- “The market reaction was disgruntled,” said Reuters, “with Chinese shares down and the yuan easing,” and the “market hungry for stimulus,” although there is no sign of government plans to significantly juice the economy.
These are the major numbers:
- Gross domestic product (GDP) grew by 6.3% in the second quarter from a year ago, and 5.5% over the first half of the year. These numbers are lower than many had expected. However, NBS spokesperson Fù Línghuī 付凌晖 said China can still achieve its full-year growth target of 5%, which was set in March, despite international geopolitical and economic complexities.
- Youth unemployment in China hit a new record high, with the jobless rate of 16- to 24-year-olds in urban areas rising to 21.3% in June. The general unemployment rate for people in cities was 5.2% in June.
- Retail sales for June rose by 3.1%, slightly lower than expected. The biggest growth in retail was in catering, sports, entertainment, alcohol, and tobacco. Sales of autos, office products, and daily use goods declined in June from a year ago.
- Deflation is a major risk, noted both by official reports on the numbers and foreign media.
