China’s economic data likely to show recovery is fizzling out FMTNews FMTBusiness
China has seen a protracted slump in its property market, traditionally a significant growth driver.
The world’s second-largest economy likely managed just 0.5% growth in the second quarter compared with three months earlier, on a seasonally adjusted basis, according to economists polled by Reuters, with separate data for June expected to show industrial output, retail sales and investment continuing to cool.
Compared with a year earlier, gross domestic product may have grown 7.3% in April-June from a year earlier, compared with growth of 4.5% in the first quarter, economist said. New home prices were unchanged in June, the weakest result this year, with rises slowing nationwide in continued weakness for the property sector, which accounts for one-fourth of economic activity.
China’s central bank will use policy tools such as the reserve requirement ratio and medium-term lending facility to weather the challenges, a senior bank official said on Friday.