July Slump The Economic Wheels in China Are Grinding Even Slower

Source: dpa 1 min Reading Time

China's economy lost further momentum in July. Chinese industrial production rose by 4.5 percent compared to the same month last year, but it was higher in June ...

Even in July, the flag of the Chinese economy did not flutter particularly briskly in the air. Read here what’s happening and why production in China is apparently declining ...(Image: AI-generated)
Even in July, the flag of the Chinese economy did not flutter particularly briskly in the air. Read here what’s happening and why production in China is apparently declining ...
(Image: AI-generated)

As reported by the Beijing Statistics Bureau, production in China increased by 4.5 percent in July, but in June, the growth had been 5.3 percent. Consumers also remained cautious, as retail sales rose by only 0.6 percent. At the same time, the decline in investments worsened. From January to July, fixed-asset investments fell by 6.7 percent due to this trend. Thus, it is said, three key metrics fall short of analysts' expectations.

New China Goals Are Likely to Make the Government Sweat

Real estate investments even plummeted by nearly a fifth (19.2 percent) during this period. The real estate crisis and weak demand in China continue to weigh on the world's second-largest economy. Strong exports remain an important support. However, the high trade surplus is also known to cause tensions with major trading partners, such as the US and the EU. In the second quarter, China's economy grew by only 4.3 percent year-on-year. For the full year, Beijing is aiming for growth between 4.5 and 5 percent. The new data is likely to increase pressure on the government to introduce further economic stimulus measures.

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