China’s economy grows at slowest pace in years despite AI and EV boom
cross-posted from: https://mander.xyz/post/55231756
The Chinese economy grew at its slowest rate since the height of the COVID-19 pandemic last quarter, as structural problems and geopolitical uncertainty continued to dog efforts to boost domestic consumption.
On Wednesday, the National Bureau of Statistics said the economy expanded by 4.3 per cent in the second quarter of 2026, as measured against last year, falling short of analysts’ expectations and the 5-per-cent growth logged in the first quarter. That’s the slowest rate since 2022.
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Some analysts fear the economy is becoming increasingly unbalanced, however, as heavy state support and private investment pour into high-tech while lower-value manufacturing and the job-creating service sector languish.
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A prolonged property slump has weighed on many families’ willingness to spend. Housing accounts for about 70 per cent of the wealth of Chinese households, far higher than in most other countries.
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Younger people not yet on the property ladder are also facing problems. Youth unemployment has remained high, a legacy of crackdowns in the tech and education sector and new challenges emerging as a result of AI. In coming weeks, another 12.7 million graduates are set to enter the job market.
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[Meanwhile, independent estimates now put China's growth in real terms closer to zero than to the official +4 per cent.]
https://www.theglobeandmail.com/business/international-business/asia-pacific-business/article-chinas-economy-grows-at-slowest-pace-in-years-despite-ai-and-ev-boom/Open linkView original on mander.xyz
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