What happened
China on Tuesday reported “one of its lowest quarterly growth rates in decades,” the Financial Times said. From April to June, the world’s second-largest economy grew just 4.3% compared to the same period last year — below economists’ projections of 4.5% and down from 5% growth in the first quarter.
Who said what
This is a “rare admission of economic weakness for China,” CNN said. Despite “surging exports buoyed by the AI boom,” the country still faces a “weak domestic economy and sluggish consumer spending,” The Wall Street Journal said. “Tensions with trade partners, including the U.S. and the European Union,” also remain, CNBC said. Focusing heavily on exports while domestic demand falters is “really quite unsustainable, to be frank,” Alicia Garcia-Herrero, an economist with financial firm Natixis, told CNN.
What next?
Such “disappointing growth” is likely to fuel calls for government stimulus measures, “including a policy rate cut,” CNBC said. The ruling Communist Party’s policymaking body meets later this month and the “extent of the slowdown will likely dominate the agenda,” said Bloomberg.
The nation’s economy grew just 4.3% compared to the same period last year
