Beijing, July 15: Mounting ahead of the US trade pressure and following the home demands, China’s economic growth in the second quarter has turned to run in the slowest pace in last 27 years, settling at 6.2 per cent in mid 2019.
While China’s trading partners and financial markets are closely watching the health of the world’s second-largest economy as the Sino-US trade war gets longer and costlier, the 6.2 per cent GDP is fuelling worries of a global recession.
China has already slashed Reserve Requirement Ratio six times already since early 2018 to free up more funds for lending while economy still remains slow to respond.
While the two sides have since agreed to resume trade talks and hold off on further punitive action, they remain at odds over significant issues needed for an agreement. Trade pressures however have intensified since Washington sharply hiked tariffs on Chinese goods last month.
According to the Monday’s growth data, Beijing needs to do more to boost consumption and investment and restore business confidence marking a loss of momentum for the economy from the first quarter’s 6.4 per cent.