Economic growth in China experienced a significant slowdown during the spring months following a robust start earlier this year. Data released recently revealed that the world’s second-largest economy faced challenges as a result of a real estate market downturn, leading to cautious consumer spending.
The latest economic statistics, covering the period from April to June, have added pressure on the Communist Party leaders who convened in Beijing for a four-day conclave to strategize the country’s economic direction.
China, known for its strict control over information, has tightened its grip in anticipation of the party gathering, commonly referred to as the Third Plenum, held every five years. Notably, the Chinese government canceled the customary news conference accompanying the data release, and Chinese companies are refraining from publishing earnings reports this week.
During the second quarter, China’s economy grew by 0.7 percent compared to the previous three months, falling short of economists’ expectations. Extrapolating this growth rate for the entire year, the annual growth rate stood at approximately 2.8 percent, which is less than half of the rate observed in the initial three months of the year.
Furthermore, the National Bureau of Statistics revised down its first-quarter growth estimate. The revised growth rate, projected for the full year, was around 6.1 percent, contrasting with the 6.6 percent figure disclosed in April.
Against the backdrop of faltering growth and a struggling property market, Xi Jinping, China’s top leader, aims to instill confidence in his policies to navigate the economic challenges the country currently faces.
