China’s growth fizzles out, plunges in Q2

China’s economic growth performance failed to follow the first quarter’s record 18.3% growth strength, the latest economic growth of 7.9% in the second quarter, slightly lower than the market forecast of 8.1%, the first half of the economic growth rate fell back to 12.7%, also fell sharply by 5.6 percentage points from the first quarter.

The data also showed that China’s per capita disposable income of 17,642 yuan in the first half of the year, influenced by the low base in the first half of last year, a nominal growth of 12.6%, but the two-year average growth of 7.4%, after deducting the price factor, the two-year average growth down to 5.2%, lower than the economic growth rate.

Liu Aihua, spokesperson for China’s statistics bureau, admitted that although China’s employment situation was stable in the first half of the year, with the urban survey unemployment rate averaging 5.2%, down 0.6 percentage points year-on-year, the contradictions in China’s employment structure were evident, with 9.09 million fresh graduates from colleges and universities this year, a new record high, and a significant rise in youth unemployment.

She also said that the economy continued to recover steadily in the first half of the year and the fundamentals laid a good foundation for economic operation in the second half of the year, but rising raw material prices put greater pressure on small and micro enterprises, especially those in the middle and lower reaches.