China Recovery of the Chinese economy remains shaky
The Chinese economy is not gaining momentum. According to a statement from the Beijing statistics office, the recovery of the second-largest economy continues to be uneven.
15.08.2024, 08:21
15.08.2024, 08:22
SDA
Industrial production in July rose by 5.1 percent year-on-year. This is less than analysts had expected on average.
By contrast, retail sales, an indicator of household consumer spending, rose by 2.7% year-on-year, slightly better than had been expected according to a survey by the Bloomberg financial service. However, overall consumption growth remained at a low level. Urban unemployment rose to 5.2%, which was slightly higher than expected.
Housing market crisis weighs on sentiment
Figures published at the beginning of this month had already indicated a weak start to the third quarter. China's export growth, which is an important pillar of growth, unexpectedly slowed in July.
The People's Republic has been struggling with a number of economic problems for some time now. Consumption is stagnating because many Chinese prefer to save their money for uncertain times. Many families are particularly worried about the ongoing crisis on the real estate market and high unemployment. Young people in particular are finding it difficult to find work.
"Numerous difficulties" weigh on growth
The government has promised help for the real estate sector and has also announced its intention to boost consumption in order to achieve the specified growth target of 5 percent by the end of the year. However, observers are skeptical as to whether the measures announced will lead to a rapid improvement in sentiment.
In a statement on the new data, the Beijing Statistics Office assessed economic development as "largely stable". However, it should be noted that "the ongoing economic recovery is still facing numerous difficulties and challenges".
The negative effects of the external environment are increasing. Domestic demand also remains insufficient.
