(Telestock) – China more than halved growth in the last quarterdespite the stimulus offered by Beijing to revive domestic demand. GDP in the 2nd quarter recorded a modest increase of 0.7% compared to the previous quarter, more than halved from the previous 1.5%. Market expectations indicated growth of at least 1.1%.
The trend growth of GDP thus collapsed to 4.7%which compares with 5.3% in the previous quarter and with 5.1% of the consensus. Acquired GDP growth at the end of June is 5%.
There industrial productionat the same time, has shown signs of slowing down, settling at 5.3% in June from the previous 5.6%although in this case the data was found higher than expected (+4.9%)Since the beginning of the year, production has increased by 6% compared to the 6.2% previously indicated.
There family demand still shows signs of weakness. The retail salesin June I am grew by 2%below the 3.7% recorded in May and the 3.3% of the consensus. Growth since the beginning of the year stands at 3.68% from 4.05% previously. The unemployment rate remained stable at 5%.
Investments also down of businesses, whose growth stood at 3.9% from 4% in the previous month.
Definitely weak data, which leaves assume the launch of further fiscal stimulus by the government and a policy easing monetary policy by the People’s Bank of China. Data that comes as Chinese Communist Party Plenum Gets Underwaya meeting held every five years that was expected last fall but was postponed. Experts predict that attention will shift from the housing market crisis to the need to find a alternative tax systemas the current one, which relies heavily on land sales, is under severe pressure due to the collapse of the land market.