China’s economic growth slowed to a record low of 6.2 per cent in the second quarter of this year, the weakest growth rate in three decades for the second largest economy reeling under the shock of the trade war with the US and weakening global demand.
The Gross Domestic Product growth slid from 6.4 per cent in the first quarter, the government data showed. While this slowdown is a 27-year low, it raised concerns as the once-resilient Chinese economy did not dip below 6.4 per cent even during the 2009 world economic crisis when the largely export dependent country came under heavy pressure due to fall in foreign trade.
China’s GDP expanded 6.3 per cent year-on-year in the first half of 2019 to about 45.09 trillion yuan (about 6.56 trillion dollars), data released by China’s National Bureau of Statistics said. The growth, however, was in line with its annual target range of 6.0-6.5 per cent for the whole year, down from the 6.6 per cent growth China put up in 2018.
A breakdown of the data showed output of the service sector, which accounted for 54.9 per cent of the total GDP, rose seven per cent in the first half, outpacing a three per cent increase in the primary industry and a 5.8-per cent rise in the secondary industry.
Consumption appeared to play a bigger role in driving growth as it contributed 60.1 per cent to the economic expansion in the January-June period, which officials consider encouraging. But the concerns remain as China’s imports declined by 7.3 per cent in June.