China's economy decelerated to its slowest pace in decades as the trade and technology standoff with US impacted the Asian economic powerhouse, The Financial Times reported.
Data released by National Bureau of Statistics (NBS) on Monday showed that China recorded 6.2 per cent year on year in the second quarter, its slowest pace since the early 1990s. The second quarter growth is lower than 6.4 percent in the first quarter.
A breakdown of the data showed output of the service sector, which accounted for 54.9 percent of the total GDP, rose 7 percent in the first half of the year, outpacing a 3-percent increase in the primary industry and a 5.8-percent rise in the secondary industry.
A more granular analysis of monthly data provided some encouraging news for country’s economy. The factory output in June and retail sales growth beat estimates, while investment in the first half of the year also suggested that stimulus measures by Beijing, including cutting 2 trillion yuan ($291 billion) in taxes, to curb the slowdown is trickling down and yielding partial results. Beijing has maintained also followed an expansive monetary policy and ushered in industrial policies targeted at stimulating investment.
On a quarterly basis, the Investments remained tepid but the month of June saw the beginning of a potential recovery as Beijing encouraged banks to lend more and the president of the two countries met to find a way to resolve the trade conflict.
Consumption continued to play a bigger role in driving economic growth, with final consumption contributing to 60.1 percent of economic expansion in the January-June period.
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