China GDP Growth Rate

The Chinese economy grew by a seasonally adjusted 0.7% in Q2 of 2024, after a marginally revised 1.5% increase in Q1. While indicating the eighth straight period of quarterly rise, the latest result was the softest since Q2 of 2023, reflecting multiple headwinds at home such as extreme weather, weak consumption, high local government debts, and ongoing property weakness. At the same time, tensions with the US and its allies deepened. Premier Li Qiang recently signaled no shock therapy would come. “According to Chinese medical theory, we cannot use strong medicine at this time. We should precisely adjust and slowly nurture, allowing the economy to gradually recover." On the monetary front, the People's Bank of China has pledged to continue a supportive monetary policy stance. However, economists believed that the central bank was reluctant to trim lending rates further as rapid easing could mean more capital outflows from the country's struggling financial markets and pressure the yuan.