Another slowdown in China’s economic growth will put further pressure on Beijing to speed up reforms.
The National Statistics Bureau said the slowdown was partly the result of the government’s efforts to reform the economy; it is trying to reduce the country’s reliance on exports and investment and encourage more domestic consumption.
In nine of the last 10 quarters China’s GDP has weakened.
From April to June the world’s second-largest economy expanded by 7.5 percent from the same period last year. In the previous quarter it was 7.7 percent.
Economist Zuo Xiaolei, who heads China Galaxy Securities, said it reflected China’s current stage of economic development: “China’s rapid growth over the last 30 years was based on a major factor, advantageous labour force conditions, but this has now changed. So it is normal that our potential growth has changed accordingly. I think China has entered a new economic phase, and the speed of growth of our economy will also change accordingly.”
Growth also has been dented by a crackdown on bank lending aimed at avoiding bubbles in areas like property
Chinese leaders have promised reforms to make the economy more productive and help entrepreneurs, but no major changes are expected until after a Communist Party meeting in the autumn.
The National Bureau of Statistics said the economy could still meet the full-year growth target of 7.5 percent, which is much stronger than forecasts for Europe, the United States and Japan.
It called the country’s economic performance in the first half of the year “generally stable” and within expectations, but added: “We are still faced with grim and complicated economic situations.”
The concern for the Chinese government is a rise in unemployment, which could spark social unrest.
Zuo Xiaolei of China Galaxy Securities commented: “A growth rate which has been fluctuating around 7.5 percent has not caused huge rates of unemployment. So we believe that a margin of fluctuation centered around 7.5 percent is part of our potential growth level. So we should not worry because of minor fluctuations.
As the latest GDP figures were released, China’s central bank governor said the government would increase incentives to support small businesses to try to stabilise growth.
With Reuters and AP
- 1Forex manipulation further undermines trust in international banking
- 2Putin calls for Russian businesses to fill the sanctions gap
- 3Fatal faulty air bags prompt record vehicle recall
- 4China discusses trans Amazon railway proposal with Peru and Brazil
- 5Cartier parent company, Richemont squeezed by Swiss Franc revaluation
- 1Snowden, Assange and Manning statues unveiled in Berlin | euronews, world news
- 2Chomsky says US is world’s biggest terrorist | euronews, the global conversation
- 3euronews live TV - News | euronews : the latest international news as video on demand
- 4Nepal: ‘equally big earthquakes coming in eastern regions,’ expert tells euronews | euronews, world news
- 5It’s a girl: Britain’s Duchess of Cambridge gives birth in London | euronews, world news
- 6Juncker to Hungarian PM Orban: “Hello, Dictator!”
- 7Evidence of ancient wine found in Georgia a vintage quaffed some 6,000 years BC
- 8International tv news | euronews: European and International tv news bulletin
- 9Exclusive: unrest in FYR Macedonia could hit other Balkan countries warns Serbian PM | euronews, world news
- 10International breaking news | euronews online world breaking news in video
- 11Portuguese language reform law goes global | euronews, world news
- 12EU membership remains Serbia’s priority, says PM Aleksandar Vucic | euronews, the global conversation
- 13How Nepal earthquake devastated Kathmandu’s UNESCO heritage | euronews, world news
- 14Spanish voters punish mainstream parties in local and regional elections
- 15Spain: the viral soldiers fighting in Madrid and Barcelona mayoral races | euronews, world news
- 16We will not be moved! China’s urban spread resistance [PHOTOS]
- 17Watch: France’s Jean-Marie Le Pen clashes with UKIP MEP Woolfe | euronews, world news
- 18Recharging without cables: the road ahead for electric cars
- 19Andrea Ferrari: the graphene guru | euronews, science
- 20eurovibes - a selection of Europe’s best music talent
Wires > Business
- 16:47 CET Airbus sees ‘several hundred’ orders at Paris Airshow
- 15:45 CET EU plans legal challenge against Germany’s road toll-Die Welt
- 11:36 CET Policies working, ECB must persist with purchase programmes -…
- 07:23 CET China’s slowing economy may steady later this year: state think…
- 01:06 CET Merkel appeals to Germans to back trade pact ahead of G7 meeting
- 00:47 CET Exclusive – Stifel in lead to buy Barclays’ U.S. wealth unit…
- 00:30 CET Ireland agrees to restore some public-sector pay cuts
- 22:33 CET Ukraine says debt restructuring talks with creditors picking up…