China's economy grew 6.3% in the second quarter, lower than expected as momentum slows

China’s economy grew 6.3% in the second quarter after near-stagnant growth a year earlier

China Daily Life (Copyright 2023 The Associated Press. All rights reserved)

China’s economy grew 6.3% in the second quarter of the year after near-stagnant growth a year earlier, missing analyst expectations even as momentum is expected to weaken in the coming quarters.

The 6.3% growth in China’s gross domestic product from April to June compared to the same period in 2022 was the fastest in the past year, and outpaced the 4.5% growth in the previous quarter, according to government data released Monday.

The GDP in the second quarter was up 0.8% compared to the first three months of the year.

The surge in growth is largely due to China’s GDP growing just 0.4% a year ago, amid strict lockdowns in cities like Shanghai during China's worst COVID-19 outbreak of the pandemic.

Analysts had forecasted growth for the quarter ended June to exceed 7%.

China’s GDP in the first quarter beat expectations and grew by 4.5%, as consumers flocked to shopping malls and restaurants after nearly three years of “zero-COVID” restrictions were removed at the end of 2022.

But analysts expect the growth to slow, amid a 12.4% slump in exports in the second quarter.