China's economy grew much slower than expected in the second quarter, as a protracted property downturn and job insecurity knocked the wind out a fragile recovery, keeping alive expectations Beijing will need to unleash even more stimulus. - REUTERS
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00:00China's economy grew much slower than expected in the second quarter, dragged down by a prolonged
00:07property crisis and job insecurity despite a strong beginning to the year. It's led to
00:12expectations that Beijing may need to unleash even more stimulus. Official data showed the
00:17world's second largest economy grew at 4.7 percent, the slowest since the first quarter
00:22of 2023 and missing a 5.1 percent forecast. The years-long property downturn deepened
00:29in June as new home prices fell at the fastest pace in nine years. Particular worry surrounds
00:35growth in retail. Businesses were forced to slash prices on everything from clothes to
00:40cars under deflationary pressure. Analysts say to expect cutting debt and boosting confidence
00:45to be the main focus at this week's third-party plenum, a key economic meeting that happens
00:51every five years. The government has been aiming for economic growth of 5 percent in
00:552024, a target that many think is too ambitious. To counteract weak domestic demand and property
01:03problems, China has already increased infrastructure investment and is focusing on high-tech manufacturing.
01:09Though now analysts at Citi, polled by Reuters, say they expect further measures to support
01:15property are coming after a meeting of the Politburo later this month.