Jason Douglas of The Wall Street Journal reports that the slowdown in China’s economy in the second quarter shows drag from real estate and consumer spending as the Chinese Communist Party leaders gather in Beijing to discuss economic reform. He writes:
China’s economy slowed sharply in the second quarter, piling pressure on the country’s leaders to act more aggressively to rev up growth as they gather in Beijing to chart the course of the economy over the next half-decade.
Gross domestic product expanded 4.7% in the second quarter compared with the same quarter a year earlier, China’s National Bureau of Statistics said Monday. The result was weaker than the 5.3% growth rate recorded in the first quarter and lower than the 5.0% figure expected by economists polled by The Wall Street Journal.
On a quarter-to-quarter basis, growth more than halved, sliding to just 0.7% versus a revised 1.5% previously. […]
But any such reforms could take time to have an effect. China’s top policymaking body, the Politburo, is also due to meet later this month. Economists say that meeting might signal more short-term aid is coming, such as further cuts to borrowing costs, which they say will probably be needed to ensure the government can meet its 5% growth goal for the year.
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