Chinese economy grew at a 7.9% which is slightly falling short of the estimates

The Chinese economy had reported a sturdy second-quarter GDP growth that was registered at a rate less that the expected one. In contrast to this, industrial production and retail sales recorded faster growth rates than the forecasts. The Chinese economy expanded gross domestic product by more than 7.9% in the second quarter in comparison to a year ago. According to their National Bureau of Statistics, the estimate is still falling short of the statistic released as the forecasted estimate was 8.1% growth rate expected for the April to June quarter.

Second quarter GDP recorded an increase of 1.2% from the previous quarter, which is faster than the 0.5% registered for the first quarter of this year and fourth quarter of the previous year 2020. However, the present quarterly expansion is still estimated at a slower rate than the 2.6% growth recorded for the fourth quarter. Amid the first quarter, The Chinese GDP grew by more than 18.3%, which is higher from a contraction registered a year ago.

China’s economy has been able to sustain a steady growth recovery. However, the National Bureau of Statistics stated that many concerns still persist amid the global spread of the virus and an unbalanced recovery in the domestic market. Retail sales were increased by 12.1% in previous month of June as in contrast to the month from a year ago, which is exceeding the forecasting estimation of 11% level. Retail growth has been negatively impacting the growth of the GDP and the overall economy, and had overshadowed the forecasts made by analysts for the first two months of the quarter.

Industrial production soared by more than 8.3%, which happens to be greater than estimated forecast of 7.8%. In the past few months, Chinese authorities are taking an initiative and announced that the government is supporting the companies that have been affected by a rise in commodity prices.