China's GDP growth accelerated to 6.3% in the second quarter

According to the data of the State Statistical Office of China, GDP growth rate in the second quarter of 2023 amounted to 6.3% year-on-year. In the first quarter, the indicator grew by 4.5%.

Despite the acceleration of growth, this value was lower than analysts' forecasts. It was expected that Chinese GDP increased by 7.3% in April-June.

The strong economic growth in the second quarter can be explained by a low base for comparison with last year, when strict quarantine measures were introduced in a number of major cities, including Shanghai. 

In general, China's GDP grew by 5.5% YoY in the first half of the year. At the same time, the Chinese government sets the goal of economic growth at the level of 5% in 2023. In 2022, the country's GDP increased by 3%.

Retail sales in June increased by 3.1% compared to June last year, but this growth slowed down compared to May (12.7%).

Industrial production expanded by 4.4% y/y – the indicator has been increasing for 14 consecutive months thanks to growth in manufacturing (+4.2%) and mining (1.7%), as well as in electricity production (+4.1%). At the same time, investment in real estate construction has declined, and construction volumes have fallen.

Unemployment in China in June remained at the level of the previous month – 5.2%.