China’s economy runs slower than forecast

Official data released on August 16 showed that China’s industrial output in July 2021 increased by 6.4% year-on-year, but much lower than the previous forecast.

Workers work at the heavy truck production line of Shaanxi Automobile Manufacturing Group, China. Photo: THX/VNA

The above information was announced in the context of increasing pressure on the world’s second largest economy.

In a Reuters poll, analysts forecast China’s industrial output in July could rise to 7.8%, after rising to 8.3% in June. Meanwhile, Retail sales in July only increased by 8.5% year-on-year, but were lower than the forecast increase of 11.5% and sharply decreased compared to the actual increase of 12.1%. of June 2021.

According to reported data, fixed asset investment in the first 7 months of 2021 increased by 10.3%. This actual increase is also lower than analysts’ forecast of 11.3% and lower than the 12.6% increase recorded in the first 6 months of 2021.

China’s economy has recovered to pre-pandemic growth thanks to strong exports, but growth is slowing as businesses cope with rising raw fuel prices and a bottleneck in the economy. global supply chain.