China's economy grows at slowest pace since 1990s

A woman purchases snacks at a supermarket on May 10, 2018 in Taiyuan, Shanxi Province of ChinaImage copyright
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China’s economic growth slowed in the second quarter to its weakest pace since the early 1990s, official figures showed.

In the three months to June, the economy grew 6.2% from a year earlier. The result was in line with forecasts.

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China has moved to stimulate its economy this year by boosting spending and delivering tax cuts.

The world’s second largest economy has also been fighting a trade war with the US which has weighed on global trade.

The data released on Monday showed China’s economic growth rate slowed in the second quarter from a rate of 6.4% in the first three months of the year.

The country’s rate of expansion has raised worries about the potential knock-on effect on the global economy.

Earlier this year Beijing announced plans to boost spending and cut billions of dollars in taxes.

It has also sought to support its economy with a liquidity boost by reducing the amount of cash banks must hold in reserve.

China’s efforts come as the country fights an escalating trade war with the US.

  • US-China trade war in 300 words

While both sides agreed to resume trade talks at a recent G20 summit in Japan, they have already placed tariffs on billions of dollars worth of one another’s goods, hurting businesses and casting a shadow over the global economy.

source: bbc.com


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