China's Economy Disappoints Currency Investors!

<p>&nbsp;China's economy lost growth momentum in the second quarter due to weak demand at home and abroad.</p><p><br /></p><p>Gross domestic product (GDP) reportedly increased by only 0.8% in the second quarter (April-June) from the previous quarter which recorded an expansion of 2.2%.</p><p><br /></p><p>On an annual basis, the economy grew 6.3% in the quarter, up from the 4.5% recorded in the first quarter, but missed expectations for 7.3% growth.</p><p><br /></p><p>A spokesperson for the National Bureau of Statistics (NBS) which released the data said that China is facing a complex geopolitical and economic international environment.</p><p><br /></p><p>However, the country can still reach its full-year growth target of around 5% for 2023 last March.</p><p><br /></p><p><br /></p><p>The data release was also followed by a report of retail sales that rose 3.1% in June, down significantly from the previous month's 12.7% reading and slightly missing expectations for a 3.4% increase.</p><p><br /></p><p>However, industrial production data was unexpectedly better with an increase of 4.4% in June from last year compared to the forecast of 2.7%.</p><p><br /></p><p>China ended its containment of Covid-19 in December, but since then it has seen a dismal economic recovery affected by a slumping property sector and plunging exports due to falling global demand.</p><p><br /></p><p>Following the data, the Aussie and New Zealand dollars recorded a decline and retreated further from the highs recorded last week.</p>