China, the world’s second-largest economy, expanded at a slower pace in the second quarter as a trade war with the United States intensified, reports CNBC.
The economy grew 6.7 per cent in the last quarter year-on-year – slightly lower than the expectations. The second quarter GDP figure was marginally below the first quarter’s 6.8 per cent, the National Bureau of Statistics said, with slowing exports making a dent on the overall first half economic growth.
The June factory output growth weakened to a two-year low in a worrying sign for investment and exporters, as a trade war with the United States (US) intensified, said the report.
China’s property market, one of the economy’s key drivers, also slowed with investments posting the weakest growth in six months in June, with sales also cooling.
“Trade tensions between China and the US have weighed on sentiment, particularly as the property market is slowing in first-tier cities such as Beijing and Shanghai,” the report quoted Commerzbank senior emerging market economist for Asia Hao Zhou as saying.
According to a report, China’s economy is already under pressure from a multi-year crackdown on riskier lending that has driven up corporate borrowing costs, prompting the country’s central bank to pump out more cash by cutting reserve requirements for lenders.
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