China’s economy grew at the slowest pace in the last two years, a direct impact of coronavirus and Beijing’s strict lockdown policies. The gross domestic product for the second quarter expanded by 0.4% in the three months to June 30, which is lower than compared to the same period last year. On a quarterly basis, GDP shrank 2.6% in the second quarter. It is the slowest quarterly growth since the first quarter of 2020 when the China was battling the initial coronavirus outbreak that began from Wuhan and the Chinese economy came to a near standstill. In that quarter, GDP contracted about 6.8%.
With the current growth it is expected that the government is going to miss its 5.5% annual growth target. However, retail sales rose to 3.1% in June against expectations.
The Shanghai Composite went down to 0.24% while Shenzhen Component came up to 0.196%.
