The Chinese economy overcomes challenges with GDP growth lower than expected

China's Gross Domestic Product (GDP) in the second quarter of the year has surprised by growing less than expected, according to official data presented by the National Bureau of Statistics (NBS) of the Asian country. During the period from April to June 2024, the world's second-largest economy experienced a 0.7% quarterly increase, and a 4.7% increase compared to the same period of the previous year. These figures are below analysts' expectations, who projected a 1% quarterly growth and a 5.1% annual growth. Despite not meeting the forecasts, the current records do not surpass the data from the previous quarter, when China's GDP showed a 1.6% increase on a quarterly basis and a 5.3% increase compared to the previous year. It is important to remember that in 2023, the Chinese economy grew by 5.2%, and the country's authorities set a growth target for the current year close to 5%. During the first half of 2024, Chinese GDP reached approximately 61.68 trillion yuan (equivalent to US$8.5 trillion or 7.8 trillion euros), according to preliminary estimates presented by the NBS. By sectors, it is observed that the primary sector grew by 3.5% annually in the second quarter, the secondary sector by 5.8%, and the tertiary sector by 4.6%. The NBS has highlighted that the Chinese economy has been operating smoothly overall, with steady progress in different aspects. There is mention of stable growth in production, continuous recovery of demand, stability in employment and prices, an increase in residents' incomes, as well as advances in high-quality development and new dynamics. Despite these advances, the NBS warns that the external environment is becoming increasingly complex, serious, and uncertain, which could impact annual growth targets. Although positive factors have been accumulated that have laid the foundation for achieving these objectives, uncertainty in the international landscape poses challenges for the Chinese economy. In addition to GDP data, the agency has also provided relevant information on other economic indicators. Industrial production recorded a 5.3% annual increase, retail sales grew by 3.7%, and the official urban unemployment rate decreased to 5.1% during the month of March. In summary, despite lower-than-expected growth in the second quarter, the Chinese economy shows signs of stability and progress in various sectors. However, external challenges and global uncertainty raise questions about China's ability to sustain its growth throughout the year.