The Chinese economy grew by 6.2 percent in the second quarter of this year. Since the early 1990s, the rate of growth of the now most important Asian economy was no longer as low.
Economists had generally taken into account a growth of 6.2 percent. China’s economy grew by 6.4 percent in the first quarter.
China is currently engaged in a trade war with the United States. The Americans levy an import tax on many products from China.
Beijing has recently taken stimulus measures to boost the economy. For example, banks were allowed to lower their capital buffers in order to be able to lend more money. Various taxes were also lowered, for which policymakers in the Communist country set aside around 2 trillion yuan, or more than € 258 billion.
Various macroeconomic figures indicate that that is starting to work. For example, factories produced 6.3 percent more in June than in the same month a year earlier. That was more than the 5.2 percent average economists expected. The Chinese also spent more in the store. Retail sales increased 9.8 percent compared to June 2018, whereas economists had expected 8.5 percent.
Real estate market bubble
Private investments increased further, while the investments of state-owned companies actually declined somewhat. This indicates that it is possible to get more money to the private sector.
House prices rose by 0.66 percent compared to May, which reduced that growth. Less was also invested in the development of real estate. Beijing is keeping a close eye on the real estate market. There is widespread fear of a bubble that could cause major damage to the economy if it collapses.