China’s economic recovery is weakening. This has to do with, among other things, outbreaks of the Delta variant of the coronavirus, for example, which forced ports to close and new lockdowns were imposed.
China also suffered from flooding, which put pressure on economic activity.
Production in China’s sizeable manufacturing industry rose 6.4 percent in July compared to August. That is less strong than in June and also less strong than economists had expected. The industry is also dealing with disruptions in the global supply chain, chip shortages and high raw material prices, disrupting production.
Retail sales and business investment in the world’s second-largest economy were also weaker than expected last month.
Recently, there have been increasing signs that the Chinese economy is cooling down. As a result, the Chinese government has taken measures to stimulate the economy.
English