China presents the lowest quarterly growth in 27 years
Data raises fears of fears of a global economic slowdown due to the consequences of the US-China trade warEuropost
China released on Monday its second-quarter figures on Monday and they are showing that country's economy slowed to 6.2% - the weakest rate in at least 27 years, as the country’s trade war with the US remains still unsolved. The 6.2% growth from a year ago is in line with the expectations of analysts polled by Reuters, but is way lower than the 6.4% year-on-year growth in the first quarter of 2019.
In a statement regarding its slow economic pace country’s statistics bureau explained the economy faces a complex situation with increasing external uncertainties. The world’s second largest economy also faces new downward pressures and will try to ensure steady economic growth, the statistics bureau added.
As stated by media, the second quarter economic growth was the country’s slowest pace since the first quarter of 1992 - the earliest quarterly data on record and is highly likely to continue its decline since there is no solution in sight of the China-US months-long trade dispute. Yet, it already raises fears that the weak growth “may cause wobbles in the rest of Asia if the slowdown ignites worries of trade tensions,” as Vishnu Varathan, head of Asia and Oceania economics and strategy at Mizuho Bank said.
With China’s exports slowing, “what’s more worrying is an even sharper slowdown in China’s imports flags risks of supply-chain effects hurting rest of Asia for which China remain a major market,” Varathan said in a note on Monday, referring to Friday's trade data according to which China’s June exports also contracted from a year ago due to higher US tariffs. Imports into China also shrank sharply due to slowing domestic demand.