China GDP: disappointing second-quarter growth tests Beijing’s ammunition to fix uneven economic recovery

Weaker than market expectations, China’s economy grew by 6.3 per cent in the second quarter – largely thanks to the coronavirus lockdown-induced low base last year, raising questions of how deep Beijing’s toolbox will be to reverse the weakening momentum for the rest of the year.

The official data released on Monday indicated continued uneven post-pandemic recovery, with faltering private confidence, record high youth unemployment and overhanging risk in the property market.

Compared to the first quarter, China’s gross domestic product (GDP) rose by only 0.8 per cent, down from a rise of 2.2 per cent in the first three months of the year.