China's economic growth more than halved in the second quarter from a record expansion in the first three months of the year, as slowing manufacturing activity, higher raw material costs and new COVID-19 outbreaks weighed on the recovery momentum. Growth slowed significantly from a record 18.3% expansion in the January-March period, when the year-on-year growth rate was heavily skewed by the COVID-induced slump in the first quarter of 2020. The economy grew a revised 0.4% in the first quarter from the fourth quarter last year. Economists in the Reuters poll expected a 8.6% GDP expansion in 2021, which would be the highest annual growth in a decade and well above the country's official target for growth higher than 6%. Still, economists in the Reuters poll expected more support this year, forecasting a further cut in the bank reserve requirement ratio (RRR) in the fourth quarter.

Source: Mint July 15, 2021 02:15 UTC