China's Economy: Resilience Amid Tariff Turbulence
China's economy exhibited resilience in Q2, growing by 5.2% despite U.S. tariffs. Analysts caution about headwinds that might necessitate additional stimulus, as industrial output leads growth but lacks in job creation. Domestic consumption remains sluggish, impacted by low retail sales and a troubled property market.
In the second quarter, China's economy grew slightly more than anticipated, showing a 5.2% increase in GDP despite ongoing U.S. tariffs. This resilience, however, faces challenges as experts warn of intensifying pressures requiring more policy actions.
Industrial production, a key growth driver, remains robust yet heavily automated, thus not contributing to job creation. The country's domestic consumption is weaker than predicted, with retail sales underperforming and the property sector dragging due to low transaction volumes.
While China's current growth beats expectations, market reactions have been subdued. Analysts indicate a need for further stimulus to address underlying concerns, including deflationary pressures and ongoing trade tensions, crucial for sustaining economic momentum.
(With inputs from agencies.)
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