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With stock markets volatile in Shanghai and Shenzhen and economic indicators in July bucking early optimism, the central bank in Beijing is cutting interest rates.
1 Is the Chinese economy in crisis?
No, that was until the growth of the G20 economy in the second quarter of this year, according to estimates already known to many of the largest economies in the world. Gross domestic product, in real terms, grew by 6.3% compared to the April-June period of last year. It should be noted that the Eurozone grew by 0.6% in the same period and Germany recorded a decline. The problem is that the growth dynamics of the Chinese economy with respect to the previous three months revealed a slowdown from 2.2% between January and March, to 0.8% between April and June. Some recent indicators are more troubling: Retail sales growth slowed from 3.1% in June to 2.5% in July. Industrial production slowed from 4.4% to 3.7% in that period. The value of exports decreased by 14.5% compared to July 2022.
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Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
