China's economy grinds to halt: never so bad since 1992
The second quarter of 2019 marks a negative record: GDP grows by 6.2% on an annual basis. This is a 0.2% slowdown compared to the first three months of the year. Effects of trade war with the United States.
Beijing (AsiaNews / Agencies) - A sharp slowdown in the Chinese economy, which in the second quarter of 2019 recorded annual GDP growth of 6.2%. This is a 0.2% slowdown compared to the first three months of 2019. Analysts agree that trade war with the United States is having serious effects.
Publishing the data, the National Bureau for Statistics explained that the economy is facing a complex situation with "growing external uncertainties".
However, industrial production in June alone rose by 6.3% compared to a year earlier. The daily production of crude steel and aluminum hit record levels. Retail sales increased by 9.8%, the fastest pace since March 2018.
A result achieved thanks to the growth (+ 17.2%) in car sales. However, some analysts have questioned the apparent recovery of both production and sales. Because car dealers in China are offering big discounts to customers to reduce the high inventories that have built up due to changing emissions standards.
Car production has actually decreased by 15.2%, for the eleventh consecutive month, which suggests that car manufacturers do not expect a sustained rebound in demand.
Economist Tom Rafferty explains: "The uncertainty caused by the US-China trade war was an important factor and we think this will persist, despite the recent tariff truce. Companies remain skeptical that the two countries can reach a wider trade agreement while recognizing that trade tensions could once again degenerate. "