According to data released by the National Bureau of Statistics of China, the GDP rose by 7.9% in the second quarter (year-on-year), below expectations of 8.1% and Q1’s 8.3%.
In monthly terms, the GDP increased by 1.3% in the second quarter, above expectations of 1.2% and Q1’s 0.6%.
China's industrial sector also showed signs of improvement. Industrial production increased by 8.3% in June (year-on-year), above expectations of 7.8% but lower than the previous month's 8.8%. In yearly terms, retail sales went up by 12.1%, above expectations of 11%, but below the previous month's 12.4%.
The NBS also reported that the House Price Index went up by 4.7% after climbing by 4.9% in the previous month.
Regarding this data, the National Bureau of Statistics commented that the Chinese economy has sustained a steady recovery, though there are still concerns about the spread of the COVID-19 pandemic in the world, especially now that the highly transmissible Delta variant is spreading. The bureau also highlighted that domestic economic recovery is unbalanced.
Despite the GDP rising less than expected, the Chinese economy may rise more than 6% this year, which is over the government's annual growth goal.
“Overall, China’s economy looks to be on track for recovery, with the 6% annual growth goal in reach,” commented a global market strategist at JPMorgan. “However, downside and structural risks in domestic demand are concerning.”
Despite the advances, China is still facing a lot of uncertainties, with the economy still below pre-pandemic levels. China also continues imposing measures to contain the spread of the COVID-19 virus, which has infected 92,147 individuals and led to 4,636 deaths since the beginning of the pandemic, according to official data.
China is now trying to advance its own vaccination campaign. So far, 1.38 billion doses of the vaccine have been distributed among the population while 223 million are now fully vaccinated, officially. According to some sources, the government is now considering using the BioNTech vaccine as a booster shot.