The pressure continues to build on China as GDP growth slows:
China’s economic growth slowed to 6.2% in the second quarter from a year earlier, the weakest in at least 27 years, as demand at home and abroad faltered as the United States ratcheted up trade pressure.
China’s trading partners and financial markets are closely watching the health of the world’s second-largest economy as the Sino-U.S. trade war gets longer and costlier, fuelling worries of a global recession.
Monday’s growth data marked a further loss of momentum for the economy from the first quarter’s 6.4%, amid expectations that Beijing needs to announce more measures to boost consumption and investment and restore business confidence.
Analysts polled by Reuters had forecast gross domestic product (GDP) in the April-June quarter rose 6.2%, the slowest pace since the first quarter of 1992, the earliest quarterly data on record.
Beijing has leaned largely on fiscal stimulus to underpin growth this year, announcing massive tax cuts worth nearly 2 trillion yuan ($291 billion) and a quota of 2.15 trillion yuan for special bond issuance by local governments aimed at boosting infrastructure construction.
The economy has been slow to respond, however, and business sentiment remains cautious.