China Beats Q2 Growth Expectations Despite Trump Tariffs

Introduction:

Hong Kong — China has reported economic growth that exceeded expectations for the second quarter, even as it navigates an ongoing trade war with the United States. Efforts to diversify into non-US markets have helped boost exports. According to the National Bureau of Statistics (NBS), the gross domestic product (GDP) grew by 5.2% in the second quarter compared to the same time last year, which is slightly above the average forecast of 5.1% from a survey of 40 economists conducted by Reuters last Friday. However, this growth marks a slowdown from the 5.4% increase seen in the first quarter of the year. When looking at the first half of the year as a whole, GDP growth stands at 5.3% compared to the same period last year, according to the NBS. Sheng Laiyun, the deputy commissioner of the NBS, noted that this growth was achieved “under the challenging circumstances of rapidly shifting international dynamics and significantly increased external pressure since the second quarter.” He added, “We are also keenly aware that the external environment remains complex and volatile, internal structural problems have yet to be fundamentally resolved, and the foundation of economic performance still needs to be further strengthened.” China’s economy is facing increasing external and internal pressures as it strives to meet its ambitious growth target of “around 5%” for the year, a goal that economists believe will be difficult to reach without additional policy suppor.....