China says its economy grew 3.2% in the second quarter


People wearing masks visit Qianmen Street amid the coronavirus outbreak on March 7, 2020 in Beijing, China.

Mao Jianjun | China News Service | Getty Images

China reported that the country’s GDP grew by 3.2% in the second quarter of this year, compared to a year ago.

It comes as lockdowns to contain the coronavirus outbreak in China eased, and as Beijing rolled out stimulus measures to prop up its economy.

Economists polled by Reuters expected gross domestic product to have grown modestly at 2.5% in the April to June quarter.

China’s first quarter GDP contracted by 6.8% in 2020 from a year ago as the world’s second largest economy took a huge hit from the coronavirus outbreak. This was the country’s first GDP decline since at least 1992, when official quarterly records started.

China’s official GDP figures are tracked as an indicator of the health of the world’s second-largest economy, but many outside experts have long expressed skepticism about the veracity of China’s reports.

The Chinese government has introduced measures to boost the economy including fiscal spending and cuts in lending rates and banks’ reserve requirements — the amount of cash that lenders must hold in reserve.

Recent data out of China show some signs of recovery. Trade numbers in June showed that China’s dollar-denominated exports and imports rose. Manufacturing activity in June also expanded compared to May, two different sets of surveys showed.

Still, there are headwinds ahead as the outbreak that first emerged late last year in the Chinese city of Wuhan has spread globally, infecting more than 13.5 million people worldwide and killed more than 582,000 people, according to the latest data compiled by Johns Hopkins University.

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The world economy is expected to fall into recession this year as many governments globally have implemented lockdowns and limited business activity and social gatherings. Slowing growth in global demand is expected to hurt Chinese exports.

This year, China made a rare decision not to set a GDP target due to uncertainties from the impact of the pandemic.

This is breaking news. Please check back for updates.



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