China Gdp Jumps In Q2

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China Gdp Jumps In Q2

China'S Gdp Jumps 4.7% In Q2, Misses Forecast

According to official data, the Chinese economy grew by 4.7% during Q2 when compared with the same period last year. While the growth rate is pretty strong, it was still below the forecasts of the market.

The 4.7% growth during Q2 comes at a time when Chinese officials are trying to boost local demand. At the same time, the property sector continues to face problems that weigh heavily on the Chinese economy.

Q2 Gdp Growth Shows A Decline From Q1

According to economists, the Chinese economy was forecasted to grow 5.1% during Q2, while the Q1 reading was 5.3%. However, the actual reading was 4.7%, which is below the forecast, and the Q1 reading was 5.3%.

For the year 2024, the Chinese government plans to achieve a 5.0% economic growth but given the current circumstances, it seems too ambitious right now. The only way for China to achieve 5.0% growth in 2024 is to announce more stimulus measures, as the current efforts are still not enough.

If we look at the GDP growth on a q/q basis, it was around 0.7%. Once again, it was below the 1.1% forecast and a lot lower than the 1.5% reading of the previous quarter.

Economists believe that Chinese officials will likely take additional measures to support the economy and prop up domestic demand. Additionally, the government will also have to deal with the property downturn which is affected by weak spending and mounting government debts.

If we look back, China has consistently delivered strong growth numbers year after year. However, that changed with the arrival of the pandemic (COVID-19) and the lockdown measures that followed it.

Going forward, the government will likely announce more stimulus measures if it really wants to achieve the target of 5.0% growth in 2024.

As things stand right now, the government has already announced many big stimulus packages aimed at improving the local demand and helping the local property sector.

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