China’s frail Q2 GDP growth puts pressure for more policy support

China’s economy grew at a frail pace in the second quarter as demand weakens at home and abroad, with the post-COVID momentum faltering rapidly and
raising pressure on policymakers to deliver more stimulus to shore up activity.
Chinese authorities face a daunting task in trying to keep the economic recovery on track and putting a lid on unemployment, as any aggressive stimulus could fuel debt risks and structural distortions.
Gross domestic product grew just 0.8% in April-June from the previous quarter, data released by the National Bureau of Statistics showed on Monday, versus analysts’ expectations in a Reuters poll for a 0.5% increase and compared with a 2.2% expansion in the first quarter.