Official figures show that the rapid recovery of China’s economy from the coronavirus pandemic has now slowed.
Gross domestic product (GDP) in the second quarter of 2021 increased by 7.9% compared to the same period last year.
This was less than half the rate seen in the previous quarter and missed economists’ forecasts of 8.1% growth.
GDP is one of the most important ways to show how good or bad the economy is.
This is an attempt to measure or measure all the activities of businesses, governments and individuals in the economy.
Official June figures also showed higher-than-expected growth in retail sales and industrial production.
“The Chinese economy has maintained a steady recovery with a recovery in production and demand,” he said. NBS said in a statement..
However, the release issued an additional warning. “The epidemic is changing globally and there is a lot of external instability and uncertainty.”
Economists have expressed concern about the recovery of the world’s second-largest economy in recent months.
Record highs for commodities such as iron ore and copper have helped boost factory inflation to the highest levels in more than a decade.
While energy shortages are also hampering factory production, the country is also experiencing supply chain disruptions as shipping companies are hit by backlogs.
According to official April statistics, the Chinese economy in the first quarter of 2021 grew by a record 18.3% compared to the same quarter last year.
This has been the largest surge in GDP since China began to set a quarterly record in 1992.
But after a Reuters economist poll predicted 19% growth, that expansion was also lower than expected.
It is also significantly distorted compared to last year’s significant economic contraction and does not show strong growth. China’s economy shrank 6.8% in the first quarter of 2020 due to a national blockade during the peak outbreak of Covid-19.