China’s economy misses forecasts as youth joblessness hits record

Youth unemployment hits 21.3 percent as economy grows slower than expected in April-June quarter.

china economy
China's economy grew by 0.8 percent in the second quarter [File: Mark Schiefelbein/AP]

China’s economy grew slower than expected in the second quarter as youth unemployment hit a record high.

Gross domestic product (GDP) expanded by 0.8 percent during April-June compared with the previous quarter, official data showed on Monday, amid lacklustre demand at home and overseas.

While GDP grew by 6.3 percent year-on-year, the figure provides a flattering picture of the economy as it comes off of a low base of comparison with 2022, when Beijing’s “zero COVID” policies brought economic activity to a standstill.

Retail sales in June climbed 3.1 percent year-on-year, while industrial production output rose by 4.4 percent.

Economists had widely expected China’s overall economy to grow by more than 7 percent.

Still, China’s National Bureau of Statistics (NBS) said the results pointed to the “good momentum” of the economy’s post-pandemic recovery.

“By quarter, the GDP grew by 4.5 percent year on year in the first quarter and 6.3 percent in the second quarter,” NBS spokesman Fu Linghui said.

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“Market demand gradually recovered, production supply continued to increase, employment and price were generally stable, and residents’ income grew steadily.”

In a further sign of China’s patchy recovery, joblessness among Chinese youth rose to a record 21.3 percent in June, up from 20.8 percent in May, NBS data showed.

Beijing has set its growth target for 2023 at about 5 percent, which is conservative relative to the growth trend of recent decades.

China’s economy officially grew by 3 percent in 2022, one of its weakest showings in decades, as the country’s strict “zero COVID” curbs shuttered businesses and kept consumers at home.

Source: News Agencies

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