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
Copyright © 2014 euronewsMore about:
- 1Spanish unemployment falls again, but economic outlook is dimmer
- 2The nightmare continues for Tesco
- 3Boeing sells aviation material to Iran for first time since 1979
- 4Hungarian internet tax proposal angers net users and providers
- 5Who passed? Financial world braces for eurozone bank stress test results
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Now is ‘right time’ for Catalonia independence vote, says Mas | euronews, world news
- 3Vatican rocked by another paedophilia scandal | euronews, world news
- 4Two container ships collide on Egypt’s Suez Canal | euronews, no comment
- 5British Muslims’ message to ISIL: Not in my name! | euronews, world news
- 6Revealed: Europe’s capital cities where it’s hardest to be a foreigner | euronews, world news
- 7Sweden becomes first European nation to recognise Palestine | euronews, world news
- 8International tv news | euronews: European and International tv news bulletin
- 9European Union News | euronews: latest breaking news and headlines about European Union
- 10How nasheeds became the soundtrack of jihad | euronews, world news
- 11Iceland volcano ‘pollutes Paris’ | euronews, world news
- 12Ebola: Six new suspected cases in Spain | euronews, world news
- 13Emma Watson threatened with naked photos leak after UN equality speech | euronews, world news
- 14Learning through “serious games” | euronews, learning world
- 15Mike Tyson: ‘You learn humbleness when you get older in life’ | euronews, the global conversation
- 16US delivers technical aid to Ukraine but warns over security | euronews, world news
- 17euronews apps : iPhone, iPad, Android, Windows Phone 8, Windows 8, Nokia S40, Nokia Asha, Smart TV and Google Glass
- 18Global warming to ‘cause 250,000 extra deaths a year’ | euronews, world news
- 19All you need to know about the Ebola virus | euronews, world news
- 20International news | euronews, latest international news
Wires > Business
- 21:24 CET ‘We won’t pay,’ furious Cameron tells EU over surprise bill
- 21:20 CET Bank of Ireland staff set for first pay rise since crisis
- 20:58 CET Luxottica owner reassures that return to helm only temporary
- 20:42 CET ECB tests find 800-850 million euro shortfall at PTSB – source
- 20:30 CET ‘We won’t pay,’ furious Cameron tells EU over surprise bill
- 20:29 CET Euro zone risks ‘relapse into recession’ without structural…
- 20:27 CET Airports group Aena delays filing of $10 billion share listing
- 20:25 CET “We won’t pay,” furious Cameron tells EU over surprise bill