The interest rate on one-year loans fell 10 points to 2.75%.
The world’s second largest economy had a rebound in business activity thanks to the lifting of some health restrictions in June, but It lost strength at Beijing’s insistence on maintaining its zero Covid policy, with extensive lockdowns and quarantines.
In July, industrial production China rose 3.8% in a year, down from 3.9% in Junereported the National Statistics Office (ONE).
Meanwhile, retail trade grew 2.7% year-on-year, down from 3.1% in June, while urban unemployment fell to 5.4%, indicated the ONE.
“The risk of stagflation in the world economy is growing and the basis for a domestic economic recovery is not yet solid”warned the ONE in a statement.
Retail sales possibly stagnant “due to some interruptions due to the virus and the blow to consumer sentiment due to the problems in the housing market”, Julian Evans-Pritchard, senior China economist at Capital Economics, noted in a report.
“The economic data for July are very alarming,” Raymond Yeung, an economist at the Australia & New Zealand Banking Group Ltd., told Bloomberg TV.
He added that “The zero covid policy continues to hit the service sector and affect household consumption”.
China’s real estate sector is reeling, with frustrated buyers in dozens of cities participating in mortgage boycotts as cash-strapped developers struggle to complete their projects.
China’s economic growth was just 0.4% in the second quarter, the lowest since the start of the Covid-19 pandemic.
Source: Ambito
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