In quarter-on-quarter terms – considered a more realistic basis for comparison – growth came in at 0.8%, well down from the 2.2% seen in January-March, the first full period after the removal of zero-Covid restrictions.
Youth unemployment jumped to a record 21.3% in June, up from 20.8% in May.
And the property sector remains in turmoil, with major developers failing to complete housing projects, triggering protests and mortgage boycotts from home buyers.
While the People’s Bank of China in July cut interest rates and the authorities pledged to help the troubled property sector, there has been very little concrete action out of Beijing.
“The key to watch from the meeting is not specific policy measures, but the policy tone set by top leaders,” Macquarie economist Larry Hu wrote in a note.
“The government mentioned ‘strengthening countercyclical policies’, but the tone related to fiscal and monetary policies seems not significantly different from before,” said Mr Zhang Zhiwei, chief economist at Pinpoint Asset Management.
Mr Zhang said the call to support the property sector appeared to show that the government has “recognized the importance of policy change in this sector to stabilize the economy.”
“We don’t expect policymakers to unleash a bazooka-like stimulus package,” Mr Hu of Macquarie said. “More likely, they would continue to roll out stimulus measures in a piecemeal way.”
