China’s economy goes back to growth column after sharp decline, U.S. affairs, weak consumption pose difficulties
After a steep decline at the start of the year, China’s economy showed vast recovery in the second quarter despite still getting plagued with major economic debacles in weak domestic consumption and investment amid the unrelenting coronavirus crisis.
China’s gross domestic product (GDP) grew 3.2% in the second quarter from a year earlier, the National Bureau of Statistics revealed on Thursday. This posting exceeded Reuter’s prediction of 2.5% growth in light of heightened stimulus to fight the economic slump posed by the health crisis.
The growth rate, however, remained to be the weakest on record and preceded a steep 6.8% decline in the first quarter, the lowest contraction rate in the history of GDP records since 1992.
Retails sales shrank 1.8% on-year in June, posting its fifth consecutive month of decline and beat the prediction rate of 0.3% growth, following a 2.8% dip in May.
Asian share markets were also seen crashing, indicating the impact of broad challenges hounding the second-largest economy that is also dealing with growing U.S. tensions on trade, technology, and geopolitics.