Youth unemployment climbs to a new all-time high in June
China's gross domestic product (GDP) registered an expansion of 0.8% in the second quarter of the year compared to the first three months of 2023, when it had increased by 2.2%, driven by the end of the restrictions to contain Covid-19, according to data published this Monday by the National Statistics Office (ONE).
However, in the year-on-year comparison, between April and June the Chinese economy grew by 6.3% compared to the second quarter of 2022, when activity was limited by restrictions, after the year-on-year expansion of 4.5% between January and March.
Thus, in the first half of the year, Chinese GDP increased by 5.5% compared to the same period in 2022, including an expansion of 3.7% in the primary sector and 4.3% in industry, while that the service sector grew by 6.4%.
"In the first half of the year, we faced a complex and serious international environment, as well as arduous tasks to promote reform, development and ensure stability in the country," the Chinese statistical office said in a statement, noting that the national economy "showed good recovery momentum".
Following the release of second-quarter GDP data, Capital Economics China economist Sheana Yue has warned that GDP growth "slowed more rapidly than expected" in the second quarter as reopening momentum faded. .
In general, for the analyst, the published data suggests that the recovery of the reopening slowed in the second quarter, while the signals of the high frequency data point to a persistent weakness during the first half of July.
"Given the gloomy backdrop, it is not surprising that policy makers are becoming increasingly concerned and have made some efforts to shore up the economy. But the measures so far have fallen short of what is needed to provide a significant boost to the economy." , has pointed out.
As such, Capital Economics has cut its annual growth forecast for China from 6% to 5.5%, in line with the analyst consensus, given signs that production for the rest of the year appears to be weaker than expected. what was previously anticipated.
RECORD YOUTH UNEMPLOYMENT.
Likewise, the Chinese statistical office has reported that in the month of June the unemployment rate among people between the ages of 16 and 24 stood at 21.3%, compared to 20.8% last month, which represents the worst reading of the data in the entire historical series.
On the other hand, at a general level, the unemployment rate in urban areas remained stable at 5.2%, confirming the divergence between the growing unemployment among those under 25 years of age, while unemployment for those between 25 and 59 years was 4.1%.
In June, China's Industrial Producer Price Index fell 5.4% year-on-year, compared with a 4.6% decline in May, marking the ninth consecutive decline and the largest decline in prices. industrialists in the country since 2016.
For its part, China's year-on-year inflation rate stood at 0%, a deceleration of two tenths compared to the rise in prices in May and its lowest level in 28 months.
The core inflation rate, which excludes the impact of volatility in energy and fresh food prices, slowed to 0.4% from 0.6% the previous month.